As we move from 2018 to 2019, there is a change evolving through the retail shopping centre ownership and investment market. Around Australia and in Queensland you can see retail indicators growing. The stronger retail properties stand out as the ‘performers’, and the weaker ones can lose their retail customer base all too easily. The successful retail properties today are notably in categories of either:
- Tourism integrated
These retail focus categories work well, and some shopping centres are a mix of a few. How can you strengthen your retail property and its category? Positioning is now important to attract customers to the retail offering, and in supporting the tenants with potential sales. Don’t let your retail property become ‘mediocre’.
Neighbourhood shopping centres will of course always exist, but the shaping of the tenant mix is critical to capture the local shoppers before they engage with regional retail offerings. The retail customer base is more ‘mobile’ and will easily travel to the retail property where they can get the products or services, but more importantly the entertainment. Shoppers like to feel good as they conveniently shop locally or regionally.
If you own a shopping centre or are considering the purchase of one, consider the positioning of the property now and how it could be ‘strengthened’ in its category and location. Get positively involved in the future attraction of your retail property.
Where can you start with that? Choose the category of retail that should apply with your property and its demographic, and then boost the tenant mix, the customer attraction, and then the market rent. All factors are linked. It is a retail equation for landlords.
Shopping Centre Optimization Planning
As an extension of that idea, here is a ‘base plan’ for retail shopping centre optimization:
- Support tenant retention with quality tenants
- Reduce vacancies before they appear
- Balance the tenant mix for quality
- Market the Shopping Centre comprehensively
- Know the local property market and customer base
- Apply local area marketing online and offline to the customer base
- Engage with your tenants frequently
- Watch your outgoings costs and comparisons for the area and property size
As a final note, the entire sector is shifting with the pressures on retailers from the internet; customers like to purchase goods and services ‘conveniently’ online. This directly says that the landlords of shopping centres should consider all the strategies behind their tenant mix, shopping centre operations, lease management, marketing, and their income base.