Effects of shopping centre re-investments and improvements on sales and visit growth

Established shopping centres have in recent years experienced increasing competition due to a steady increase in newer and bigger centres as well as online shopping. How could existing centres compete on such terms?

 

Design/methodology/approach

 

This analysis is based on interviews with 96 shopping centre managers in charge of malls that existed in 2008 and 2014, about their improvements during a three-year period and the effects on sales and number of visitors from one year before and one year after that period. The investments and improvements are structured and analysed mainly along seven common categories of shopping centre attributes recognised as determinants of customer satisfaction and/or patronage behaviour in existing research.

 

Findings

 

The results show significant positive relationships between shopping centres’ improvements and the growth in sales as well as visit rates. The effects are, however, more significant for sales than visit growth. The forms of investment that yielded the greatest positive effect are improvements in physical dimensions such as access, atmosphere the retail mix. Increased investments in less physical dimensions such as promotions, entertainment, refreshments and service had little or no effect.

 

Originality/value

 

Present studies on centre renovations and improvements are merely case studies or studies of single cases, but this study deals with larger number of cases and long-term effects. In contrast to previous research on shopping centres and the role of satisfaction and patronage, with recommend balance between physical and non-physical aspects, this study highlights the importance of physical capital dimensions.

 

Keywords

Shopping centre; Shopping mall; Satisfaction; Attractiveness; Patronage

© 2016 Published by Elsevier Ltd.

 

Johan Anselmsson (Ph.D) is an Associate Professor in Marketing at the School of Economics and Management, Lund University in Sweden. The food and retail industry is one of his main research interests, with a focus on satisfaction and purchase behaviour. His work has been published in several academic journals: Journal of Marketing Management, Journal of Retailing and Consumer Services, British Food Journal and Journal of Product and Brand Management. International Review on Retail, Distribution and Consumer Research, Journal of Retail and Distribution Management.

Photo credit: Roderick Elme