How to improve your shopping centre’s performance?

Key learnings

We focused on the crucial role of tracking footfall and sales data, which helps shape long-term retail strategies and store layouts. Retail experts emphasised the importance of having accurate data on foot traffic and consumer demographics for optimising staff placement and selecting the best sites for stores. We also addressed challenges like data accessibility and the importance of sharing data across the industry. These discussions not only highlighted the benefits of data-driven decision-making but also showed how shared insights can lead to sector-wide improvements.

Looking for more detailed insights on key topics that were shared by industry leaders during the round table? Then keep on reading!

Brand counting

A key opportunity discussed was brand counting. By tracking visitors across different zones and stores, we can better understand how areas within a shopping centre are performing. While overall visitor numbers are important, more detailed data from specific areas provide deeper insights. Access to tenant sales data, which can be limited, helps us understand store performance better. Also, combining sales data with foot traffic information helps us see how effectively visitors are converting into buyers. It's important to standardise this data to compare it effectively across different areas and stores. Long-term trends identified from this data help property owners see how their centres and tenants are performing over time.

Sharing these insights with tenants helps them understand their own performance better and aligns their daily operations with broader business strategies.

Benchmarking

Benchmarking was highlighted as essential for measuring a property’s standing, both within a portfolio and against the broader market. During the roundtable session, PFM introduced new benchmarks, including city indexes, which serve as solid reference points for property owners. These benchmarks facilitate comparisons with similar properties, enhancing discussions with tenants. The tool allows owners to refine evaluations based on specific characteristics of shopping centres, such as being open or enclosed, and to examine the seasonal effects on these types. It also enables comparisons of neighbourhood shopping centres of similar size.

Furthermore, properties can be benchmarked at the city level to determine if a location is prime or if the city itself holds appeal compared to other cities in the Netherlands. An interesting development from Wereldhave is the introduction of zoning measurements, which help assess the impact of structural changes within a centre. For example, merging two underperforming entrances into one effective entry can significantly boost foot traffic, improving tenant performance and potentially leading to higher rents. These types of improvements are more justifiable with a deep understanding of pedestrian flows and the effects of such interventions.

Smart Data

Using data from mobile apps to enhance consumer insights is a promising area, though it requires reliable results. By combining app data with footfall data and ensuring it represents a significant portion of the population, we can offer dependable insights. This type of data provides continuous updates on where visitors come from, their demographics, brand preferences, and more. It also helps identify who is not visiting enough and how to better attract them. Amongst others, this can greatly improve marketing efforts and help you understand how attractive your location is compared to competitors. It's set to revolutionise how shopping centres attract and interact with customers, starting in the Netherlands in summer 2024.