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Proceedings of the Human Factors and Ergonomics Society 59th Annual Meeting - 2015 1127

THE SHOPPING MALL OF THE CUSTOMER EXPERIENCE


FUTURE
Marc L. Resnick
Bentley University
mresnick@bentley.edu
@PerformSol

Shopping malls are experiencing a significant decline in both shoppers and transactions. The challenge is
that there are better options now available through big box stores and on-line shopping. Some mall
operators are experimenting with mall customer experience strategies to overcome these limitations.
Shopping malls are adding non-retail experiences such as live concerts and even roller coasters. Newer
innovations combine co-working spaces for startup companies with new ideas and complementary pop-up
store space for them to try out their new products and services in an ecologically valid environment with
real customers. This is most effective with experiential goods that include apps, apparel, and food
products. This talk will present a variety of ideas and cases outlining the critical importance of customer
experience for this model and for the future of shopping malls.

INTRODUCTION duration of the potential shopping experience to allow the


customer to frame it as a day-trip experience rather than a
Shopping malls have experienced a significant decline in shopping-trip experience.
recent years. Some have been abandoned, some have been But changes in the retail market and in the customer
torn down, and many are being repurposed into other types of requirements have significantly altered the options available.
facilities (Semuels, 2015) such as office parks or residential Big box stores such as Target provide almost the same set of
developments. Peterson cites a report from Green Street options as many shopping malls, also with a single drive, also
Advisors that 15% of malls will fail or be repurposed within with food available, and usually at a much lower price point.
the next ten years and up to 50% within fifteen to twenty years When the customer required a wide variety, on-line shopping
according to Howard Davidowitz. opened up an exponential increase in the items available. As
Failing malls are disastrous for the local economy. They on-line options, overnight delivery, and confidence in using
usually do not close immediately and get replaced by other credit cards online increased, this option continuously
tax-generating or job-supporting facilities. Many slowly crowded out the need for shopping malls. The long walk
shrink over a decade or more, hurting the local population across the shopping mall lot (see Figure 1) and the generic
through many direct and indirect pathways. options at the Food Court compared to an increasing diverse
The problems are in part related to the changing nature of consumer palette (see Figure 2) created significant
Copyright 2015 Human Factors and Ergonomics Society. DOI 10.1177/1541931215591164

the retail environment. In past years, malls satisfied a disincentives.


significant customer requirement. They allowed users to drive But the new sources of the retail experience also have
once and obtain a wide variety of goods from a diverse set of their flaws. Big box stores do not provide a satisfying
retailers. Anchor stores were a confident source of general and customer experience (see Figure 3). Online shopping is
frequently needed goods such as apparel. Anchor stores were insufficient for experiential goods that need to be touched,
paired with boutique stores that provided great sources of tasted, or tried on to ensure the proper fit with the customer
experimental shopping, exclusive services, impulse shopping, needs. The prevalence of highly targeted ad networks that
and gift browsing. Food courts supplied the sustenance so that collect extensive databases and profiles of each consumer and
shoppers could make trips to the mall a full day experience, are shared among huge networks of online vendors (and
increasing their total spend. snooped by law enforcement) make customers hesitant to
move all of their consumption online.
The Customer Experience Challenge
Shopping Mall Response
For the human factors practitioner, this is an illustrative
example of the importance of viewing customer experience To compete, shopping malls have been refocusing some
from a wide view. The experience being satisfied by the of their space on improving the customer experience in ways
shopping mall was not about finding a specific product and that big box stores and on-line retailers could not (Peterson,
purchasing it without error. It was about reducing the 2014). They are using open spaces to book live music
uncertainty of finding items for which the identity was not concerts. They increasingly use kiosk retail experiments in
clear. It was about reducing the need to get in and out of a car the corridors to provide goods that are not offered online or at
to shop at distal locations or even in and outdoors at a strip big box stores. Some provide unconventional services such as
mall when the weather was bad. It was about browsing among urgent care medical centers and roller coasters (see Figure 4).
products that were new and exciting, even if not practical. They experiment with open air courtyards. Unfortunately,
The food court was an important resource for extending the these changes have only slowed the decline in shopping malls.
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Proceedings of the Human Factors and Ergonomics Society 59th Annual Meeting - 2015 1128

They continue to close and vacancy rates within malls are still Exhibit spaces also allow technical experts to demonstrate the
higher than historical averages (Semuels, 2015). It seems that use of new products or for mall customers to try them out
they still have not found a use case that consumers value. interactively. These spaces are often modular so that evenings
can be used to combine multiple spaces for full fashion or
Innovation in the Shopping Mall Experience technical shows. More recently, they have been used to host
hackathons.
Newer models of innovation are more likely to reverse
this decline. They are not gimmicks added to an existing Pop-up retail. Many malls are experimenting with pop-
shopping mall experience that has not changed much from the up retail spaces (Clifford, 2008). These can be located in
old model. They integrate newer types of retail strategy into a empty retail stores, in kiosks located in mall corridors, or in
shopping mall layout – providing an integration between the the food court. They allow more extensive and ecological
new features and the established retail space. They maintain testing environments to be created. New ventures create
the advantages of one stop shopping, experimental products temporary but realistic retail environments for true testing of
and services, and a day-trip experience rather than a shopping- their new products and services (Gonzalez, 2014).
trip experience. This is particularly important for experiential goods such
as apparel and restaurant concepts (McLaughlin, 2012) and for
Integration with on-line retailers. One new service seasonal goods that may not need space for more than a few
provided by shopping malls is to integrate with on-line weeks (Gregory, 2009). Users can try on new forms of apparel
retailers. Most retailers are joining extensive logistics that may be too risky to purchase on-line. They can sample
networks that enable a customer to order online and pick up new forms of food that may be hard to imagine based on
the item at a retailer for instant gratification. This option is images or text descriptions. The benefit for malls is that as
limited when the customer needs to go to a different retailer each venture grows and has new products to test, different
for each purchase. It eliminates the benefit of the one-stop areas of the mall can be used for pop-up space (see Figures 8
shopping advantage of online shopping. But a mall can and 9). If there is a vacancy at the food court, a food venture
provide this because of the diversity of establishments that can can be matched there for a pop-up test. Smaller products can
be co-located. The mall operator can establish a consolidated pop-up in kiosks within any mall corridor. More extensive
drive through pick-up location so customers can order from product and service launches can be tested in a vacant store
any or all of the retailers and pick them up in a single drive- space.
through location (see Figure 5).
Farmers Markets. Some malls are experimenting even
Co-working spaces. Some malls are repurposing the more far afield by incorporating farmer’s markets (see Figure
vacated spaces into co-working spaces, which are a growing 10). These leverage the local food trend as well as balance the
need in the modern workplace. The traditional open office demand for space during times that the mall is typically less
(see Figure 6) is inadequate for many modern workplace needs crowded.
(Resnick, 2014). Today, there are 53 million Americans,
representing about one-third of the workforce who are CONCLUSION
independent workers. About forty-one million are under 40,
representing a workforce that prefers an independent working This case study presents a variety of initiatives and
environment, flexible work schedules, and more creative job innovations that shopping malls are trying in an attempt to
requirements (Bentley PreparedU Project). Shopping malls develop new customer experiences that better meet current
are an ideal venue for coworking because they are open during demand. They are experimenting with some models that may
evening hours, provide services that workers may need during be unexpected to consumers and provide engaging experiences
the day, and can be accessed easily after hours. that surprise and delight.
Perhaps more importantly, they provide access to an In addition to specific examples, this case study is also
ecologically valid testing environment and real customers intended to present a broader definition of customer
representing a diverse set of demographic and psychographic experience. This approach requires UX practitioners to have
profiles. This co-location facilitates the recruitment of mall knowledge of business strategy, marketing, and other areas
customers as participants in focus groups and other testing that we often disregard.
environments. This reduces the cost of entrepreneurship and
effective user testing, which is a critical step that is often REFERENCES
skipped by new ventures because of time and cost.
Bentley University PreparedU Project (2015) About the
New Product Zones. Another way that malls are PreparedU Project. Bentley University. Retrieved on
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environment is the creation of new product zones (McCue, Clifford S. (2008, October 30) Hanging out at the mall for the
2015). These areas are designed for new ventures to showcase holidays. New York Times, Retrieved on 3/10/15 at
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for models to exhibit new fashions or wearable electronics.
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Proceedings of the Human Factors and Ergonomics Society 59th Annual Meeting - 2015 1129

Gonzalez M. (2014). The Pop-Up Paradigm: How Brands


Build Human Connections in a Digital Age. Lioncrest
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Gregory S. (2009, November 6) Why pop-up shops are hot.
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Figure 3. Big Box Store Illustrating Poor Customer


Experience

Figure 1. Shopping Mall Parking Lot Illustrating Large


Parking Lots Often Requiring Long Walks

Figure 4. Shopping Mall Re-visioned as an experience rather


than a shopping trip
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Figure 5. Consolidated Drive Through Pick Figure 6: Open Office Layout - highlighting the possible
Up at a Shopping Mall interference of one employee’s work with another’s.

Figure 7: Co-working Space - highlighting the division of employees from different


organizations around the space with flexible co-working space in the center.

Figure 8. Outside Access for a pop-up restaurant at a shopping mall.


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Figure 9. Inside Access for a pop-up restaurant at a shopping mall.

Figure 10. Farmer’s Market located inside a shopping mall.

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