Watch the video Suburban Regional Shopping Malls: https://www.viddler.com/embed/1a9d2038/?f=1&autoplay=0&player=full&disablebranding=0
According to Perreault, Cannon, & McCarthy (2021) from the course textbook’s Video Instructor’s Manual, “this video focuses on the current problems of suburban regional and superregional shopping centers. Southdale Center located in suburban Minneapolis is considered to be the prototype for most of the suburban regional and superregional shopping malls built during the second half of the twentieth century. Southdale opened in 1956 and featured 70 retail tenants in an 800,000 square foot enclosed, climate-controlled mall, anchored by two department stores.
The suburban regional shopping mall and their department store anchors enjoyed great success for almost 50 years. However, in the final decade of the twentieth century, they began to experience problems: competition (direct and indirect), industry overcapacity (retail space), a decline of the department store, and changes in shopping behavior. Strategies for turning around regional and superregional shopping centers include renovation, re-tenanting, entertainment, and zonal merchandising. The need to create an appealing, exciting shopping center that stimulates social activity is the key to revitalizing traditional malls. However, some suburban regional shopping centers will not survive. In fact, some have already been “decommissioned.” At the end of the segment, Rolling Acres Mall in Akron, OH, is shown as an example of a shopping center in trouble.
The video features interviews with several shopping center developers: Yaromir Steiner, CEO of Steiner & Associates, Bob Gorman, CSM, Area Manager of Greenwood Park Mall, Simon Property Group, Les Morris, Manager, Corporate Public Relations, Simon Property Group, Mike Leonard, COO. The Hogan Group, and Glen Hogan, President/CEO, The Hogan Group” (Perreault, Cannon, & McCarthy, 2021).
For this case study, you will need to address the following:
Imagine yourself as the manager of a struggling local suburban regional shopping mall (select a struggling regional mall that you are familiar with). What do you think the mall should do to improve its performance? (Hint: Firmly establish the problem before recommending treatments.)
What shopping trends do you foresee over the next 10 years? How might these trends affect suburban regional shopping malls?
What new retail concepts can you identify? How might you learn about more? What strategies do you suggest for learning about new retail concepts? (Perreault, Cannon, & McCarthy, 2021)
For each prompt, please include evidence to support your position. Marketing decisions and strategies should be evidence-based. You may find it helpful to review Module 1 when you complete this assignment. (Hint: Allow the concept of value to direct your thinking. Marketers should not recommend strategies without first understanding the problem and the value the target market seeks.)
**** VERY IMPORTANT: This assignment involves more than summarizing the case or video presentation. Remember, effective marketing strategies must be designed to add value to the target market. When completing this assignment, students should demonstrate the needs of the target market and craft strategies that will satisfy the target market’s needs. Major marketing decisions should not be based on assumptions, instincts, or guesswork. Major marketing decisions should be rooted in evidence and facts. Therefore, it is critically important that students include a wealth of evidence to support how the target market derives value and how student-generated recommendations will provide the benefits sought by the target market. Students may find it helpful to identify and focus on one specific regional mall instead of regional malls in general. DO NOT simply repeat the information presented in the accompanying video. Conduct your own research to determine the problems regional malls are experiencing, and your solutions should be based on satisfying consumers’ needs.
Formatting
The body of your APA-formatted case study must be 2 to 5 pages double-spaced. The page count does not include the cover page, reference page, or any other charts, graphs, or tables.Body content in excess of 5 pages will not be considered for grading purposes. An abstract is not required. Do not use first or second person pronouns in your paper. Your report should include a cover page, cited references, and must include the following:
Introduction: The introduction should introduce the topic to readers or provide enough background information so readers can understand the context of the paper. Although introductions should be included, do not use the heading, “Introduction.” The beginning is assumed to be the introduction.
Content: The content should address each question with thoughtful, in-depth consideration reflecting both proper use of course terminology and additional original thought. Include a descriptive heading for each of the three primary questions. Do not use the questions themselves as headings.
Conclusion: The conclusion should revisit key points or perhaps discuss future implications of the topics discussed in the paper. Using the heading “Conclusion” signals to readers that the document is ending.
Reference
Perreault, W. D. Jr., Cannon, J. P., & McCarthy, E. J. (2021). Instructor’s manual to accompany Essentials of marketing: A marketing strategy planning approach 17th edition. McGraw-Hill
Suburban Regional Shopping
Marketing strategies impact a business because they determine failure or success. Additionally, marketing strategies consider several elements in a business setting, most important emerging trends which may affect consumer purchasing decisions and behavior. For instance, the advancements in technology have resulted in a surge in e-commerce, causing a decline in traditional visits to malls or convenience stores. Suburban regional shopping malls are not immortal to the emerging retail habits and consumer behavior trends.
According to Iarocci (2018), a decline in traditional retailing practices has adversely affected department stores anchors for suburban regional shopping malls. Notably, suburban regional shopping malls have enacted strategic changes such as renovating, introducing zonal merchandizing, and entertainment to mitigate emerging challenges. However, suburban regional shopping malls’ performance continues to decline despite the strategic changes. While suburban regional shopping centers have contributed to economic development, challenges such as competition and changes in shopping behavior continue to persist, prompting the identification of new retail concepts that will improve performance and increase adaptability to emerging trends.
Lake Forest Mall Solutions to Reduced Performance
Lake Forest Mall in Gaithersburg, Maryland, was developed in 1978 as a suburban regional shopping mall. Initially, the store had four significant anchors; JCPenney, Sears, Lord and Taylor, and Macy’s. However, the recent decline in the suburban shopping mall led to the closure of three anchors in 2019; JCPenney, Sears, and Lord and Taylor, leaving Macy’s as the only anchor. Lake Forest shopping Mall’s performance has declined due to changing consumer behavior and increased competition in the retail market.
Changing Consumer Behavior
Primarily, consumer behavior has evolved due to advancements in technology and the introduction of e-commerce. Notably, keeping track of changes in consumer behavior enables a business to meet customer needs, choices, and preferences (Vatamanescu et al., 2017). Consumer behavior influences purchasing decisions that impact businesses positively or negatively depending on the company’s marketing strategies. Lake Forest Mall, similar to other suburban regional shopping malls, has declined in performance because of increased demand for a multi-channel purchasing experience. In the past decades, the improvements in comprehensive services and reduced shipping time in online purchases caused an upsurge in e-commerce. Customers keep shifting from traditional in-store purchases to online purchases depending on the urgency and needs. Therefore, Lake Forest Mall should incorporate e-commerce channels like websites for the anchor and other stores to ensure customers get a multi-channel purchasing experience.
Increased Competition from Brand Retail Establishments
Additionally, the upcoming retail shops for major brands increase competition. The new retail shops offer subsidized prices for their products because they avoid using middle people, who increase costs. Conversely, the Lake Forest shopping mall anchor shops and other business outlets engage middle people’s services to acquire products. Relatively, the product prices are higher compared to a brand’s retail shop. Introducing brand retail shops as part of anchor tenants will enhance performance for Lake Forest Mall.
Shopping Trends in the Next Ten Years and Their Implications on Suburban Regional Shopping Malls
Omni-channel Shopping Approach
According to Shi et al. (2020), an omnichannel customer experience is a trend likely to gather steam in the next ten years. The recent shift to e-commerce due to the Covid-19 pandemic increased online shopping by a considerable percentage. Businesses had to roll out new technologies and services to meet the demand. The significant areas of consideration in e-commerce are omnichannel customer experience, e-commerce optimization, and increasing delivery satisfaction (Shi et al., 2020). The omnichannel development will shape and impact retail shops because it meets the needs of an evolved customer base by providing in-store pick-up options, online service delivery, and shops. Essentially, omnichannel provides the customer with unified and seamless physical and digital channels for shopping.
The Suburban regional shopping malls already feel the impact of an omnichannel approach indicated by their declining performance. The suburban regional malls were developed to provide customers with a physical shopping experience, and most business outlets in the establishments have not invested in the current technology. Therefore, increased omnichannel utilization in retailing will lead to a further performance decline unless the suburban regional shopping malls transform and embrace the newly created digital spaces.
Flexible Payment Options
The growth of e-commerce has led to flexible payment methods to promote customer satisfaction. Most businesses are moving from the rigid payment options to a buy now, pay later option, which encourages impulse purchase (Pham et al., 2018). Moreover, the development of digital payment companies has increased payment options from the traditional pay-on-purchase method that required visiting physical shops. As earlier stated, consumer needs, choice, and preference are vital in the success or failure of a business. Therefore, providing various payment options will increase traffic and expand the customer base.
According to the structure of suburban regional shopping malls, the most suitable payment option is a pay-on-purchase approach. Moreover, the lack of digital shops prevents shops from engaging customers and providing several payment options. The continued growth of payment options may impede progress and derail development in suburban regional shopping malls. Also, customers are likely to shift to other business centers with flexible payments option leading to the closure of anchor tenants and other business outlets in the suburban regional shopping malls.
Emerging Retail Concepts and Strategies for Learning the Emerging Concepts
The Convergence of Traditional Omni-channel and New Retail
Perrault, Cannon, & McCarthy (2021) illustrated that the development of e-commerce has led to a strategic move by retailers to integrate offline and online shopping experiences. In essence, online stores allow customers to incorporate technology in the shopping experience while physical shops provide traditional in-person purchases. The new concept in retail entails the integration of offline, online, logistics, and data to enhance customer experience. The new model prompted various brands to shift from a single channel to a multi-channel and omnichannel that provides avenues for customer interaction.
Marketing research is an effective strategy for learning about new retail concepts. Information is a driving force behind development, and research provides a way to gain valuable evidence-based information (Perrault, Cannon, & McCarthy, 2021). Businesses thrive in new markets and the challenging environment because of informed strategic decisions. A business must research emerging trends, competition, and new business approaches. Also, acquiring information on customer needs, choices, and experience is critical in implementing marketing strategies. Therefore, learning about new concepts in retail is best done through research.
Conclusion
In summary, marketing strategies are essential in the growth of a company. In the modern economic market, there exist different challenges facing business entities’ performance. For instance, the suburban regional shopping malls have experienced a declined performance due to competition from developed brand shops and the upsurge of e-commerce in place of brick-and-mortar establishments. The challenges adversely affect performance thus need a prompt and immediate solution. E-commerce has impacted consumer buying behavior, consequently leading to the closure or decline of regional shopping malls. Embracing technology and integrating traditional and emerging purchasing preferences can mitigate the adverse effect on businesses. Additionally, marketing research ensures that retailers remain updated on emerging trends and implement strategies aligned with the emerging consumer needs.
References
Iarocci, L. (2018). Reviews: From Main Street to Mall: The Rise and Fall of the American Department Store. Journal of American Studies, 52(2). https//:doi.10.1017/S002187581800023
Pham, Q. T., Tran, X. P., Misra, S., Maskeliūnas, R., & Damaševičius, R. (2018). Relationship between Convenience, Perceived Value, and Repurchase Intention in Online Shopping in Vietnam. Sustainability, 10(1), 156. https://doi.org/10.3390/su10010156
Perreault, W. D. Jr., Cannon, J. P., & McCarthy, E. J. (2021). Instructor’s Manual to Accompany Essentials of Marketing: A Marketing Strategy Planning Approach. 17th edition. McGraw-Hill.
Shi, S., Wang, Y., Chen, X., & Zhang, Q. (2020). Conceptualization of Omnichannel Customer Experience and its Impact on Shopping Intention: A Mixed-Method Approach. International Journal of Information Management, 50, 325-336. https://doi.org/10.1007/s10551-021-04884-3
Vatamanescu, E. M., Nistoreanu, B. G., & Mitan, A. (2017). Competition and Consumer Behavior in the Context of the Digital Economy. Amfiteatru Economic, 19(45), 354. https://www.ceeol.com/search/article-detail?id=524844
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