Effects of shopping centre re-investments and improvements on sales and visit growth
Author
Summary, in English
Purpose
Established shopping centres have in recent years experienced increasing competition due to a steady increase in newer and bigger centres as well as online shopping. How could existing centres compete on such terms?
Design/methodology/approach
This analysis is based on interviews with 96 shopping centre managers in charge of malls that existed in 2008 and 2014, about their improvements during a three-year period and the effects on sales and number of visitors from one year before and one year after that period. The investments and improvements are structured and analysed mainly along seven common categories of shopping centre attributes recognised as determinants of customer satisfaction and/or patronage behaviour in existing research.
Findings
The results show significant positive relationships between shopping centres' improvements and the growth in sales as well as visit rates. The effects are, however, more significant for sales than visit growth. The forms of investment that yielded the greatest positive effect are improvements in physical dimensions such as access, atmosphere the retail mix. Increased investments in less physical dimensions such as promotions, entertainment, refreshments and service had little or no effect.
Originality/value
Present studies on centre renovations and improvements are merely case studies or studies of single cases, but this study deals with larger number of cases and long-term effects. In contrast to previous research on shopping centres and the role of satisfaction and patronage, with recommend balance between physical and non-physical aspects, this study highlights the importance of physical capital dimensions.
Established shopping centres have in recent years experienced increasing competition due to a steady increase in newer and bigger centres as well as online shopping. How could existing centres compete on such terms?
Design/methodology/approach
This analysis is based on interviews with 96 shopping centre managers in charge of malls that existed in 2008 and 2014, about their improvements during a three-year period and the effects on sales and number of visitors from one year before and one year after that period. The investments and improvements are structured and analysed mainly along seven common categories of shopping centre attributes recognised as determinants of customer satisfaction and/or patronage behaviour in existing research.
Findings
The results show significant positive relationships between shopping centres' improvements and the growth in sales as well as visit rates. The effects are, however, more significant for sales than visit growth. The forms of investment that yielded the greatest positive effect are improvements in physical dimensions such as access, atmosphere the retail mix. Increased investments in less physical dimensions such as promotions, entertainment, refreshments and service had little or no effect.
Originality/value
Present studies on centre renovations and improvements are merely case studies or studies of single cases, but this study deals with larger number of cases and long-term effects. In contrast to previous research on shopping centres and the role of satisfaction and patronage, with recommend balance between physical and non-physical aspects, this study highlights the importance of physical capital dimensions.
Department/s
Publishing year
2016
Language
English
Pages
139-150
Publication/Series
Journal of Retailing and Consumer Services
Volume
32
Links
Document type
Journal article
Publisher
Elsevier
Topic
- Social Sciences
- Business Administration
Keywords
- Shopping centre
- Shopping mall
- Satisfaction
- Attractiveness
- Patronage
Status
Published
ISBN/ISSN/Other
- ISSN: 0969-6989