How are REITs and mall property owners adapting to a digitally-changing world?
The digitally-changing world is making it difficult for the traditional mall model to survive. Shoppers are no longer satisfied with an array of stores - they also want experiences to keep them entertained - and coming back. Online competition, from giants such as Amazon are putting new pressures on REITs, mall owners and retailers to create a physical world that mirrors the digital experience, making digital transformation a top priority for retail owner/operators and merchants. According to recent data 69% of retail executives say they plan to increase their investment in emerging technology.
Is brick and mortar retail at risk? We think not.
According to the International Council of Shopping Centers (ICSC), in 2016 there were 300% more malls in America than in 1970. But the closing of shopping centers can’t be blamed on the online shopping revolution. Mall operators are simply facing challenges that have more to do with oversupply and inability to adapt to consumer’s changing behaviours. 90% of retail purchases in America today still happen in a brick and mortar store. Those properties that do adapt and embrace a digitally-enhanced customer experience are not only surviving, they are thriving.
Here are four things retailers and retail property owners should keep in mind while undergoing a digital transformation.
Develop a customer-focused digital strategy
Accelerate investments in new technology
Use data to drive operations
Drive a digital customer experience
What is your strategy for adapting to a digitally-changing world? Download our free eBook today, entitled “Re-Inventing Retail” for in-depth insight into retail’s converging worlds of physical and digital.
Mappedin provides REITs and retailers with the ability to make their properties searchable and discoverable -- indoors. Its software platform is helping to change the way of retail by providing tools to manage dynamic indoor information and build meaningful wayfinding experiences.
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