What is the effect of "MALLS" on small retailers?

Question

Recently there is a spurt of Malls in bigger cities. What will be its effect on retailers in the long run

Answer 1

"Branding" is the In thing these days.After branding the deluge of advertisements, for the brand , the shops "pull " the customers in. Thus malls are , primarily , for the big , branded products , that are costly, that are exchangeable, that are visible.

But, I feel, the small retailers will always exist.There is a large layer of population which is uncomfortable with malls , too. They will always prefer small retailers.

But.... there is the need for the retailers to be innovative to pull the customers. For example, I have seen many small retailers specialise on Home delivery.

Answer 2

Hi, This is an interesting question and i have dealt with it in mumbai territory. Its simple as the mall story has unfolded, it is here to stay and grow more and more.
Small retailers work on smaller capitals and credit from small brands and limited visibility and advertising. They are competing with blue whales. Necessarily YES their business will be and is already impacted in a big way. Now comes sustenance theory.....they have to survive and will survive too but what they need is PRODUCT ( different products not branded ones which sell in malls but different products with value added, stylish and affordable balance in them). They will coexist with malls only if their product is different and to the tastes of customers, affordability will help the volume sales and high priced products will also sell for exclusivity. The answer for them to exist lies in RIGHT PRODUCT for their clientele and area where they are located. For everything else customers in next 3-4 years ( if not already)will be heading for malls.THE ROS / day(rate of sale of goods) is going down for small retailers and those who say its same or is up are definately selling something exclusive or dont have a mall come up near their locality which wont be the case down the years as malls will exist in every area for sure.

Answer 3

The small retailers will have to specialize, improvise or go for a franchise. Ultimately nearly everyone survives , only they will have to change gears and move with the time and opportunity.
P.S : They can also stock up from the malls when they have their big sales(Time) and sell the goods at normal prices afterwards (Opportunity)

Answer 4

There is no effect of malls on small retailers because malls have goods affordable to the high class people...so middle class go to the retailers...

Answer 5

I do not think there will be any impact on retailers, since their base is more wide, it is everywhere around you & they concentrate more on sorrounding loyal customers with personal touch. Even big branding gurus are taking tips from small retailers way of business.

Answer 6

the ultimate demise of "mom and pop shops"