Malls start to see rise in occupancy rate
Malls are making a comeback and for mall managers, spring is the time to add more commercial outdoor furniture such as planters, benches, bike racks and outdoor ashtrays to keep that momentum alive.
In spite of a misled consensus that malls were doomed, the latest stats from the International Council of Shopping Centers shows that mall occupancy rates are now at the highest they have been in 27 years.
That's three, long, wrenching decades of recovery. Nearly 30 years of battling everything from recessions to smartphones shoppers.
"The 2014 data paints a very strong picture of the shopping center industry for the year ahead, and is especially promising in the mall segments," said ICSC spokesperson Jesse Tron. "Record growth in key indicators such as occupancy and NOI (Net Operating Income) strongly indicate a healthy outlook and further underline the ability of the industry to innovate to fit the needs of today's consumer."
The ICSC reports that occupancy rates at US shopping malls hit nearly 95% in the last quarter of last year. The big leaders continue to be stores such as Nordstrom's and Neiman Marcus that offer unique shopping experiences you just won't find online.
Even J. C. Penney's and Macy's are forecasting higher revenue.
In fact, rental rates are up as well. Base rates at shopping centers grew 6.5% from 2013 to 2014, the biggest increase since the ICSC started gathering the data. Retailers see the value in paying the higher rents at the right locations.
How commercial outdoor furniture can help your mall survive
Sure, there's been a shakeout as online retailers continue to take a chunk of the marketplace. But consumers still like to see, touch and try on merchandise and they are flocking to the malls to do it.
According to experts, one of the problems is that marginal stores in smaller markets just weren't cutting it. The industry has gone through a consolidation process, where the prime, Class "A" malls in higher-income, more populated areas are doing just fine. The earlier rapid expansion of retail stores across the US apparently went too far. Some experts claim nearly 300 malls will still probably close in the near future. Once the anchor stores such as J.C. Penney or Sears move out, the downward spiral begins.
But even in this age of the internet, consumers still want to get out of the house. They want to browse, go on a shopping date with a friend and see what's new.
In that regard, they want to visit a clean, classy shopping center with commercial outdoor furniture - commercial outdoor planters filled with bright flowers and commercial-grade benches that are clean and graffiti-free.
Large commercial planter
Deploy plenty of commercial trash cans so the grounds are clean and there are enough garbage receptacles to deter people from littering. (Studies show, the closer you place trash receptacles to traffic entry and exit points and people, the more likely they are to use them).
Inside, malls need to take off the gloves and start making offline shopping excursions a "wow" experience. And some are doing that. They are adding Wi-Fi, plays areas for children, valet parking, gyms and other amenities.
The web is a disruptive force. It does make it easier for consumers to purchase an item with just one click of a finger. But as shoppers know, you can stare at a screen from every angle and still not be assured that item will fit correctly or how it will look on you when it comes in the mail.
That's one huge advantage shopping malls will always have over the Internet.
As the latest occupancy data shows, with the right commercial outdoor furniture outside and the right atmosphere inside, mall foot traffic still has legs.
And adding large commercial planters to the surroundings is also a great way to make an existing mall exterior look newer and more appealing to the eyes.