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{Re}Making the Mall in the Digital Age

G. Scott Aikens, Ph.D. /

Unit 1: The Future Is Now Unit 2: The Importance of Place Unit 3: Re-Making the Mall 1: Design Unit 4: Re-Making the Mall 2: The Mix Unit 5: Re-Making the Mall 3: Communications Unit 6: Communications & Leasing / Development

Unit 1: The Future Is Now

The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates [.] [t]he process of industrial mutation incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism [.]
It is what every capitalist concern has got to live in.

-- Austrian economist Joseph Schumpeter Capitalism, Socialism & Democracy, 1942

The large slowdown we saw in the month of December in traffic was very broad based. It wasnt unique to any particular region. It wasnt unique to any particular day-part or product set or product line. There was just fewer people out there shopping, and so fewer people for us to capture and provide some great experiences in our stores [.] The truth is that traditional brick and mortar retailing is at an inflection point. No longer are many retailers only required to compete with stores on the other side of the street. They are now required to compete with stores on the other side of the country." -- Starbucks CEO Howard Schultz January 23rd, 2014 earnings conference call

a strategic inflection point is a time in the life of business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end -- Intel Founder Andrew Grove Only the Paranoid Survive, 1996

Retail is technology now. Go back to what (Starbucks CEO) Howard Shultz said mall-based shopping is in a secular decline you need to be in mobile based shopping -- CNBCs Jim Cramer, February 25, 2014

The Apple Stores average sales per square foot is $6,050, according to Retail Sails, a New York-based research and consulting firm. Apple knows how to create fervor in the hearts and minds of Apples customers.

THE WALL STREET JOURNAL: Amazon to Offer Kindle Checkout System to Physical Retailers Project Would Give E-Commerce Firm Access to More Customer Data January 29, 2014

What are some of the changes that may be caused by digital media that you are noticing in how shoppers behave? Are these changes really as big a deal as people like Howard Schultz and Jim Cramer imply?

Unit 2: The Importance of Place

Omni-Channel Retailing is the evolution of multichannel retailing, but is concentrated more on a seamless approach to the consumer experience through all available shopping channels, i.e. mobile internet devices, computers, bricks-and-mortar, television, radio, direct mail, catalog and so on. The bricks-and-mortar stores become an extension of the supply chain in which purchases may be made in the store, but are researched through other "channels" of communication.


Oakland County

The Village of Rochester Hills

Questions: Place matters. So, how can we better understand the variety of roles our shopping centers and their collections of stores can play in the retailers omni-channel ecosystems?

How do we enhance these roles?

If the point of purchase is increasingly dis-embedded from physical location, how does this impact how we understand the real estate deal and lease?

Unit 3: Re-Making the Mall: Design

Cordova Mall, Pensccola, Florida, 1973

Panama City Mall, Panama City, Florida, 1976

Acadiana Mall, Lafayette, Louisiana, 1979

Tulsa Promenade, Tulsa, Oklahoma, 1986

Meadowbrook Village Mall, Rochester Hills, MI, 1973

The Village of Rochester Hills, Rochester Hills, MI, 2002

High Street, Hawick, Scotland, ca. 1890-1900

Market Square, Lake Forest, IL, 1916

Northland Center, Southfield, MI, 1954

Southdale Mall, Edina, MN, 1956

Southdale Mall, Edina, MN, 1956

50th & France / Galleria / The Shops at West End

Southdale Mall, Edina, MN

What is the future of the enclosed mall? The formats not very old

Unit 4: Re-Making the Mall: The Mix

Unit 5: Re-Making the Mall: Communications

Hybridize Place & Its Virtual Representation

1) put the tools in place; 2) focus on back-end analytics; 3) run campaigns that serve the malls customers 4) leasing and development activities as campaigns

1) put the tools in place

Website built on an open-source content management system a clearly identifiable brand logo and matching style guide creative integration of social-media tools into the behavioral flow development of substantial interactive communities

My fianc and I have been together for almost 5 years. I had two children before him my oldest who just turned 15 January 29th has a rare disease called menkes. The drs said he wouldnt make it passed the age of 3 because it was diagnosed to late. He is severely handicapped and requireds 24 hour care therefore I stay at home with him. He is on a feeding tube, oxygen, wheelchair, suction and more. On Jaunuary, 30, 2011 we had our youngest son the day after his brothers birthday. We knew when we were pregnant with him he was going to have the same disease as his older brother. But if caught before the first month of life it usually can be helped with copper injections for the first 3 years of life. His brother saved him. So when he was 5 days old we flew to the nih in Maryland to be put in a study, he just finished his last copper injection yesterday on his third birthday. As Im writing this I am in the waiting room of childrens hospital waiting for my older son to get out of surgery for kidney stones. [My fiance] also had a daughter before we met so we have 4 children. We love our children but rarely get time for ourselves and this would be a great opportunity to spend alone time with my love. Thank you for listening to our story.

Social Capital: The central premise of social capital is that social networks have value. Social capital refers to the collective value of all "social networks" [who people know] and the inclinations that arise from these networks to do things for each other ["norms of reciprocity"].
How does social capital work? The term social capital emphasizes not just warm and cuddly feelings, but a wide variety of quite specific benefits that flow from the trust, reciprocity, information, and cooperation associated with social networks. Social capital creates value for the people who are connected and - at least sometimes - for bystanders as well. From BetterTogether.ORG, an initiative of the Saguaro Seminar: Civic Engagement in America at Harvard University

Question: Does consideration of social capital merit inclusion in shopping center strategy? Any anecdotes supporting your view?

Hybridize the Place & Its Virtual Representation

1) put the tools in place; 2) focus on back-end analytics; 3) run campaigns that serve the malls customers

Focus on Back-end Analytics

Google Analytics: Total Web Site Traffic

Google Analytics - Referrals

Core business data such as vehicular and foot traffic must be integrated at the heart of the various analytic tools. This integration is critical to the social platforms potential to help optimize the performance of the mall. What other data can be added to facilitate better understanding? Are there mobile apps that add value here?

Hybridize the Place and Its Virtual Representation

1) put the tools in place; 2) focus on back-end analytics; 3) run campaigns that serve the malls customers

Case Study 1: Natural Advantages

Sales and offers seems to be a big opportunity for shopping centers to work with mobile apps. Any tips? What other ways can mobile apps help shopping centers better serve retailers?

Case Study: 12th annual Light the Village

Entertainment Schedule: Crittenton Stage 5:15-5:30 p.m. - We welcome the St. Irenaeus Children's Choir to the stage - to remind us what the season is truly about! 5:30-6 p.m. Zippidy 2 Dads opening performance, you won't want to miss this crazy, fun show! 6-6:45 p.m. - The Gratitude Steel Band brought back for an encore performance from 2012! 6:45-7:15 p.m. - Jay Towers from Fresh 100.3, Mayor Bryan K Barnett, Jennifer Kincer, and the Salvation Army Brass Band help welcome Santa and Mrs. Clause to the stage for lighting count down and caroling.

The Cornerstone Parade begins at 7 p.m. & includes: * Cornerstone Community Financial-Mascot with Children & Mayor Barnett * The Violettes * Stoney Creek High School Marching Band * SANTA brought to town by the Rochester Hills Fire Department 7:15-7:30 p.m. - Caroling led by The Violettes as Santa makes his way to Santa's Snug 7:30-8:15 p.m. - Rockin Around the Christmas Tree with The Gratitude Steel Band

Case Study: Yummie Yogurt

Yummie Yogurt Grand Opening Offer: Free yogurt from 5 9 pm. Facebook Ad: June 19th to June 21st Cost: $125.64

26,656 impressions
1,982 unique page-views on the Web site

Gave away 1600 cups of yogurt.

Case Study: 2013 Fall Fashion campaign

4 key guidelines for developing mission-critical campaigns:

1) Pick a metric that is measurable and work to move that needle 2) Go multi-platform 3) Create eye-catching, compelling content and push it across relevant media platforms 4) Real community participation is the Gold Standard

1) Pick a metric that is measurable and work to move that needle

2) Go Multi-Platform

3) Create eye-catching, compelling content and push it across relevant media platforms

Content such as these photo-albums was distributed through Facebook between September 1st and October 13th and received 162,374 impressions and 21,323 clicks.

4) Real community participation is the Gold Standard

The photo contest program garnered:

556,815 impressions 21,481 clicks 13,936 unique visitors to the programs Web page 4,090 votes 2,362 new fans

Nearly 300 members of the public applied to model at the Spring 2013 show.

Unit 6: Communications & Leasing / Development

Leasing as a multi-platform communications campaign

ICSC Las Vegas

Development as a multi-platform communications campaign