From the National Retail Market Report: The era of the traditional shopping mall may be coming to an end, but that doesn’t mean developers are giving up on large-scale retail developments.
To confront the reality of e-commerce and continue to attract customers to brick-and-mortar establishments, some developers are building bigger and more extravagant shopping centers than ever before.
In addition to having a greater diversity of stores and restaurants, these next-generation malls are relying heavily on entertainment to drive sales. Using amusement parks and fashion shows as well as world-famous architects and celebrity chefs, the top retail developers are now selling an experience with retail present, and not the other way around.
“The merger of entertainment and retail is critical,” said Todd Caruso, senior managing director of retail services at global real estate services firm CBRE. “It’s no longer an impulse kind of retail experience; it’s a clear destination. If you get the right location it does work.” [more]