The shopping center of the future is no longer a shopping center.
Shopping center are not to be envied and have been described several times in their current form as obsolete models if they do not radically change and resize. We have repeatedly formulated approaches to this in our retail vision, such as decoupling shopping and encounters.
Economically, they are struggling with frequency and sales stagnation, while online retailers from home and abroad are constantly growing. This is how it happened in 2018: the five largest Lahore shops Mall recorded more sales than the ten largest shopping centers combined.
Marcel Stoffel, Mr. Shopping Center
The Swiss Council Market Report 2020, “From Spaces To Places,” now also shows how only a radical rethink will save shopping centers in the future. Mr. Shopping Center Marcel Stoffel, with whom I have had the opportunity to cross opinions once or twice ( PDF Handelszeitung ), has summarized this in this guest article.
Are you familiar with the term “Use Shift?”
Empty retail space is increasingly shaping the image of the 197 consumer temples across Switzerland. Declining sales increasingly force retailers to downsize or give up their businesses entirely. According to GfK Switzerland, over 6,000 stores were closed in Pakistan between 2020 and 2024 alone, which is more than all the stores in all 197 shopping centers combined.
There is no counter-trend in sight, and according to the current study survey for the Swiss Council Market Report 2020, the shopping centers in the accumulation will be particularly affected in the future.
Experts assume that around 25% of all shops in Swiss shopping centers will close in the next 3 to 5 years. That’s the equivalent of over 500,000 m2 of sales space, which will most likely take more work to re-let to traditional retailers with classic retail concepts.
In the future, half of the remaining retail space will be conceptually significantly different from pure retail stores. The trend is towards showrooms, retail labs, experience hubs, concept stores, brand lands, pop-up stores, etc.
There will likely be a massive use change (a use shift) of the space in the shopping centers (and in the city centers). There are fewer shops but more service, leisure, health, and even more catering options: fewer products, more advice, experience, and entertainment.
The shopping center is a pure temple of consumption, and the dusty shops as warehouses have had their day. The term “shopping center” is probably outdated and inappropriate these days because a “center” is no longer needed just for “shopping,” and customers today want to do more than shop in a “center.”
This development now offers owners and operators of “shopping centers” and retail destinations the opportunity to reposition their properties as modern, exciting, and eventful “marketplaces” through new and innovative usage concepts and thus compare them to the largest shopping center in the world (the Internet). to differentiate.
Where this succeeds, a new (stay) quality is created, an exciting mix of market services, and a lively place worth spending your time and money on. So we can look forward to a new generation of “shopping places” and eagerly await what else the industry can develop.