Shopping malls face numerous challenges in today's digital economy that require them to constantly evolve and adapt their business models to remain relevant. With the increasing popularity of e-commerce stores that offer seamless, convenient online customer experiences driven by advanced data analytics, brick-and-mortar stores are finding it difficult to keep up.
Shoppers now have more choices than ever before, and experiences, rather than just products, are driving conversion rates.
To stay ahead of the curve, forward-thinking shopping mall managers are turning to modern analytics tools to make smarter, data-driven business decisions that not only improve customer experiences but also optimize their tenant mix and increase tenant revenues.
After all, the largest income stream for malls comes from rent paid by their tenants, making it a critical element of their business to analyze and examine.
Optimizing Tenant Mix
Mall managers are tasked with determining the best mix of stores, understanding and planning store adjacencies that drive higher consumer spending and longer mall visits, and engaging in more informed rent negotiations with tenants.
By using data and analytics, managers can increase tenant revenues and optimize customer journeys like never before.
One way that tenant revenue managers are optimizing tenant mix is by using people counting analytics. This solution tracks customer behavior, movement, and trends over a period to show how much a particular tenant's location influences sales at surrounding stores and whether customers are likely to shop at certain groups of stores during a single mall visit.
People counter sensors placed strategically throughout a shopping mall give managers an overall view of the shopping mall and individual store performance, as well as how customers are using and traversing the mall.
With these insights, managers can optimize tenant selection and placement, while identifying which stores need to be relocated, remarketed, repriced, or removed. A good tenant mix can be described as a variety of stores that work together to enhance the mall's performance, as well as each individual store's performance.
Data-Driven Rental Agreements
Furthermore, people counting analytics provides accurate data to show which areas in a mall receive the most traffic and sales conversions, making those areas prime real estate for anchor stores and complementary stores. Tracking those stores' sales productivity on an individual level gives mall managers the information they need to calculate realistic rental values.
Flex-Leasing for Pop-Up Stores
Another way, shopping mall managers can optimize their tenant mix, is through flex-leasing models, where smaller pop-up stores do not have to commit to a full lease agreement contract.
By leveraging greater insight into shopping mall performance and trends, as well as customer behavior and traffic flow patterns throughout the mall, managers can strategically place short-term pop-up stores and kiosks in high-performing areas to test products and concepts, increase sales and foot traffic, and enhance the customer buying experience through more visible and personal interactions.
How To Choose Your Tenant Revenue Management Solution
Overall, people counting analytics is the most widely used solution for optimizing shopping mall performance and tenancy strategies.
Our Vemtenant solution combines sensor technology with powerful BI analytics software to provide easy-to-understand and user-friendly reports that show performance for all stores in one report or divide stores into categories like clothing stores, restaurants, and more.
With these insights, tenants can easily report sales figures online from any computer, smartphone, or tablet, and mall operators can strategically segment high-performing areas for anchor stores and effective tenant mix, while defining more realistic rental agreements that benefit both stores and investors.
By leveraging data analytics, mall managers can optimize their tenant mix, increase tenant revenues, and improve customer experiences in today's digital economy. Sounds like something for your mall? Contact us today for a discussion about Vemtenant.
