You don’t have to look far to find dire predictions for the future of the retail industry. In 2017, Credit Suisse issued a report that predicting 20-25% of American malls will close within five years. Meanwhile, consumer spending is mostly on the uptick, increasing by the trillions since 2010.
So where does that leave the future of retail and more specifically, the future of the shopping mall?
According to some experts, the future of the shopping mall does not center around shopping. In their “Destination 2028” vision, Westfield outlined their plan for malls to serve as a centerpiece of “hyper-connected microcities” with “AI-infused walkways, eye-scanners that personalize a consumer’s visit, and smart changing rooms [for] an ‘experience’ layer for shoppers,” according to a Forbes article on the report.
On the business front, shopping mall properties will continue monitoring their success with the new kinds of tenants – those co-working spaces and healthcare facilities. Shopping mall and retail property owners will monitor metrics like lease renewals, time spent in the center, occupancy rates, operating costs and others. They’ll also keep an eye on the returns from investments in those new technologies.
For more on the retail industry and how a Master Systems Integrator can help energy managers and portfolio owners address the challenges of the retail industry today, download our e-book "How an MSI Can Help Your Retail Portfolio Thrive."
Continue following our "Retail Industry: From Retail Apocalypse to Smart Malls, How Energy Managers Can Prepare for the Future of Shopping Malls" blog series: