Special Projects

Turning mall hoardings into revenue- generating assets

Boarded-up storefronts are one of the most visible under-utilized assets in a mall environment.

There are classic economic indicators like GDP, interest rates and the stock market. Then there are the alternative indicators like the Big Mac Index or using electric production, rail cargo shipments and loan disbursements to determine the health of the Chinese economy. These informal measures are handy in sectors where performance data isn't readily available.

One such measure for the region's mega-malls is the number of storefronts with "coming soon" hoardings. Counting the number of hoardings can reflect the overall health of the retail sector and consumer spending. 

Retail tenant turnovers are a natural part of the economic cycle of mega-malls. Except for a newly opened locations, the higher number of hoardings correlate with poor performance. It's even a simple visual way for shoppers to sense whether a particular mall is in decline or on the upswing.

There are two types of hoardings; the good and the bad. The good ones are the kind in front of leased stores. The retail tenant has designed a 'coming soon'  hoarding that passively informs shoppers of their imminent opening. The bad kind of hoardings hides empty stores. They are covered with generic mall branding with some variations of the 'new exciting concept coming soon' messaging.

One or two boarded-up storefronts can go unnoticed. But consumer behavior is predisposed to finding these anomalies in a mall environment. A certain small percentage of shoppers are mission-driven shoppers. Before coming to the mall, they have a specific brand or item in mind and will make a beeline for that store. But most shoppers will browse through the mall, actively looking through the storefronts to see what catch their eyes. The discipline of visual merchandising exists for this reason. They may not stop to pay attention to them, but shoppers certainly will notice hoardings.

The prevailing strategy for mall owners and operators is to make the hoardings fade into the background. But instead of hiding these assets, there are creative opportunities to turn them into revenue and engagement generators.

Convert hoardings into advertisement billboards for existing tenants. 

For a retail brand to succeed in a mega-mall environment, it must attract shoppers from outside and within. The hoardings provide existing retail brands an opportunity to pull shoppers from one side of the mall to another.

The hoardings can easily be added to the mall's advertisement inventory and sold to retail brands.

Transform hoardings into hybrid physical/digital engagement boards.

Mega-malls in the GCC play an outsized role in the resident's social, entertainment and community life. As a result, residents often have a vested interest in their favorite malls. But very few mall brands provide a vehicle for shoppers to share their wishes and needs besides a Net Promoter Score (NPS) survey.

Running a campaign across a hoarding that asks shoppers what brands they would like to see in that location can spark one form of engagement. Through smart allocations of codes or hashtags, malls can capture the shoppers' preferences through their choice of social media channels, websites or apps.

Run virtual storefronts with an in-mall experience twist.

With creative design, QR codes and e-commerce integration, hoardings can become virtual storefronts. Retail tenants waiting to finish their interior fit-outs can begin generating sales by linking their hoardings with their e-commerce platforms. Other retail brands can use empty store hoardings to showcase their latest products and drive sales. In collaboration with their tenants, the mall operator can use this mechanism to showcase a collection of products from different brands.

In addition to the traditional e-commerce delivery service, the mall operator can create unique in-mall experiences. Shoppers can select to receive their purchased products at any location of their choosing in the mall. Alternatively, they can have the items delivered to their parked vehicles at a chosen time or pick them up from a designated location. The blend of physical and digital shopping generates novel in-mall experiences that can drive brand preference.

All of the above options can leverage existing programs, personnel and digital channels. They can also drive incremental revenue and, at the bare minimum, provide for more creative ways to engage with shoppers.

Jae Hwang
Oct 05, 2021
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3
min read
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