Veena Loh, an associate director with JLL Malaysia, said some businessmen, including mall operators, were reluctant to spend money on research in the mistaken belief that what worked 20 years ago would still work today.
They tended to underestimate the speed at which retail trends were changing, she added.
“In today’s market, where retailing trends change so fast, research is especially important,” she told FMT. “Mall operators need to future-proof their malls to remain relevant.”
Recently, in a report on the oversupply of retail space, the Financial Times said that “true occupancy rates” could be as low as 40% in malls located in some areas in the Klang Valley.
In January, it was reported that 27 new malls were expected to be ready in Greater Kuala Lumpur alone by 2021, bringing the total number of malls in the area to 197 and the sum of retail space to 86.2 million square feet.
Loh said mall operators and retailers needed to find out the needs and wants of the public so that they would know how to adapt.
“If you look at the big malls in Klang Valley, like Mid Valley Megamall, Suria KLCC and Sunway Pyramid, you’ll find that they are constantly refreshing their tenant mix and making other changes to their environments,” she said.
“Although online shopping is constantly growing, we have still not reached the point where the masses are choosing it instead of going to malls.”
Jennifer Chow of Just Jen Connections said malls should not take their locations for granted.
Some malls that aimed at serving the neighbourhoods around them were finding out that the strategy didn’t always work, she added.
“Nowadays, people want to know what’s happening in a mall before they go there. They want to know what shops a mall has or what promotions are available. They’ll check a mall’s social media page before going.”
Chow said a mall must know “what it wants to be and who it’s trying to attract” and successful malls would typically spend a lot of money on promotions and activities targeted at their desired markets.
“They are picky with their tenants to make sure they have the right credentials and suit the mall’s image.
“More than ever, shopping malls are about the experience. So, to be successful, a mall needs to offer something different from others, be it in terms of facilities, activities or customer service. It has to find a niche and not just rely on the retailers to draw customers.”
27 new malls to be ready in KL by 2021, adding to property glut