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Do big malls

affect the
retail
stores?
What is a retail store?
Retail involves the process of selling
consumers goods or services to customers through
multiple channels of distribution to earn a profit.
Demand is identified and then satisfied through
a supply chain. Attempts are made to increase
demand through advertising. In the 2000s, an
increasing amount of retailing began occurring
online using electronic payment and delivery via
a courier or via postal mail. Retailing as a sector
includes subordinated services, such as delivery. The
term "retailer" is also applied where a service
provider services the small orders of a large number
of individuals, rather than large orders of a small
number of wholesale, corporate or government
clientele. Shops may be on residential streets, streets
with few or no houses, or in a shopping
mall. Shopping streets may restrict traffic to
pedestrians only. Sometimes a shopping street has a
partial or full roof to create a more comfortable
shopping environment - protecting customers from
various types of weather conditions such as extreme
temperatures, winds or precipitation. Forms of non-
shop retailing include online retailing (a type
of electronic commerce used for business-to-
consumer (B2C) transactions) and mail order.

Shopping Malls:
A shopping mall is a modern, chiefly North
American, term for a form of shopping
precinct or shopping centre, in which one or more
buildings form a complex of shops representing
merchandisers with interconnecting walkways that
enable customers to walk from unit to unit.
A shopping arcade is a specific form serving the same
purpose.

Evolution of malls: Its been more


than a decade since organised retail came up in
India. In the early phase of development, it was
just restricted to plaza culture. Post 2003, mall
culture started multiplying in the metro cities,
and India started becoming the hub of organised
retail. The modern Indian retail industry has gone
through a plethora of changes to attain the
stature that it has now. This article shows the way
forward to establish successful retail and real
estate synergies.
The organized retail trend started in India
in 1999 with the launch of Ansals Plaza in Delhi,
which was followed by Crossroads in Mumbai and
Spencer Plaza in Chennai. Until the end of 2002, only
three shopping malls existed in India. Post 2003, mall
culture started multiplying in the metros. Cities like
Mumbai, Bangalore, Kolkata, Chennai readily
accepted the mall culture and so began a trend that
was to catch on extremely fast.
Advantages of Malls:
Availability of Parking: One of the major
advantage of malls is the availability of parking
space. Now-a-days, the parking space in cities is
getting less day by day as the roads are full with
vehicles. The parking space in the modern era is
an essential necessity of people. The big malls
provide parking space so that the people can park
their vehicles and can enjoy stress-free in the
malls without the concern for their vehicles. The
parking cost is not much and can be affordable
even by the lower class people.
Variety of Retailers: In a shopping mall, there
are different type of retail stores at a single place.
We can find Kitchen utensils shops, Footwears
shops, Garment shops, Bakery and confectionary
etc. It is an advantage over retail stores as a retail
store contains only one of the listed items. A
person visiting a shopping mall can shop
everything at a single place and doesnt have to
roam around I the market for variety of products
he/she wants to purchase.
Food and Entertainment Facility: The
business strategy of including food hub and
entertainment facilities like gaming and movie
theatre is proving one of the advantage for the
mall owners as many people visit the malls for
this purpose only. The involvement of multiplex
has made people watch movies in the malls
rather than going to a private theatre. The
children these days instead of going to parks or
grounds, go to the malls to play games which
makes the mall business increase. Also, some
promotional events are done in the malls which is
also an advantage for a mall.
What Drives People towards
malls?
Get to walk around: People visiting a mall
get to walk around and explore different
shops of various things and also different
types of people with unique culture. People
can explore things in the big malls and can
spend time in it. According to the survey, the
youngsters hangout mostly in the malls to
pass their time. The survey also inferred that
the people in mall get a lot of things which
they cant get in a retail store.
Discount and Offers: The discounts and
offers given in the malls are one of the major
forces which drives people to the malls. In
the retail stores, the shopkeepers dont give
much offers but in the big malls, there are
mostly offers going on which are advertised
in the newspapers which attracts the people
towards the malls.
No need to spend the money always: As
said before, the malls are mostly used for
hanging out. Hence in the mall, the people
need not to spend their money always. In
fact, the people can come out if they think
there is nothing worth spending in the mall.
Whereas in retail store, people mostly have
to spend their money to buy things. For e.g.
In a clothes shops, if a person enters will
most probably buy something but if a person
enters a mall and doesnt find anything to
buy can walk out easily without spending a
single penny.
Survey Analysis:

Questionnaire: (For Retailers)


1. Name:
2. Name of Shop:
3. Type of Shop:
4. Revenue generated/month:
5. Profits incurred/month:
6. Business condition after establishment of big
malls:
7. Change in revenue (if any):
8. Reviews on malls:
9. Future steps to be taken against the loss (if
any):

Questionnaire: (For common people)


1. Name:
2. Occupation:
3. Frequency of visiting malls: i. Often ii.
Weekends iii. Very few
4. Driving factors towards malls:
5. Service at mall : i) Good ii) Neutral iii) Bad
6. What will you prefer? i) Malls ii) Retail Stores.
Survey analysis in comparison with the
economic concepts.
1. Substitutability: According to the survey,
the malls these days have become a
perfect substitute for the retail stores.
People are replacing their minds of going
to a retail store to going to the malls for
shopping. The malls are slowly replacing
the retailers and the retailers business is
going down which means the
profit/revenue graph of the retailers is
considerably going downwards and maybe
reach to the minimum in the mere future.
2. Shifting of the Demand Curve: As the
malls are perfect substitutes, the demand
of the retailers is going down. This implies
that the demand curve in respect to the
retailers has moved on the left side
decreasing their demand by the people.
There are also some other factors like
online shopping which effects the
business of the retailers.