I was caught in the mother of all traffic jams at the weekend. I had totally forgotten that it was the start of the Black Friday sales.
But then again, who shops at the malls anymore? I thought shopping malls were just so… yesteryear.
But clearly, I was wrong. And so too, it would seem, were the thousands of people streaming into Singapore’s prime shopping district of Orchard Road.
That got me thinking….
Retailing should be simple. It is about satisfying the needs and wants of customers.
Admittedly, not everyone wants to elbow their way past other shoppers to grab the last set of earbuds on the shelf in the store. But at the same time, not everyone thinks that scrolling through a catalogue on their mobile phones or laptops is in anyway fulfilling, either.
Many retailers are certainly aware that they need to provide an omni-channel experience for customers. That means making both online and offline shopping equally enjoyable.
But retailing is not just about choosing online over offline. It is not a binary choice but instead it is about appreciating and understanding what customers want, and when they want it. The customer, as they say, is always right.
Some shopkeepers have managed to provide the right kind of mix. Others still have a lot of catching up to do.
Shopping malls need to do their part too. They need to make their malls a destiny of choice rather than a journey to hell.
From an investor’s perspective, if you are thinking about buying shares in retail-focussed REITs, it might be a good idea to visit some of their malls….
…. If you enjoy the experience, then other shoppers and retailers might feel the same way, too.
And if shoppers keep coming back, and shopkeepers keep renewing their leases, then that could be the start of something very attractive for investors, namely, recurring revenues, which is the lifeblood of many successful businesses.
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None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Disclosure: David Kuo does not own shares in any of the companies mentioned.
