Malls are facing an upsurge in footfalls. Rentals, according to recent reports, are slated to rise by as high as 10% for retail brands in some parts of India. On the other hand, mall owners have a herculean task to constantly innovate existing spaces and make them as inviting and lucrative as possible for generations Z and alpha. Interactive store layouts, pop-up shops, artist workshops and live entertainment are making malls the hub of recreation. 

Technological advancement has put every player on a race to be the best mall to throng. The clock is ticking. Bhumika Group, Gulshan Group, Vegas Mall, and DLF Avenue share their achievements till date.  

Making Retail Experiential

Abhishek Shrivastava, Associate Vice President, DLF Limited (Cluster Head, Delhi, DLF Malls) believes that augmented Reality (AR) and virtual reality (VR) are being integrated for virtual try-ons of clothing, accessories and exploration of virtual showrooms. “Contactless payment methods, curbside pickup, and buy online, pick up in-store (BOPIS) services cater to changing customer preferences. Retail brands are incorporating IoT (Internet of Things) devices to monitor inventory, track foot traffic, and adjust store environments (lighting, temperature, music) in real-time at smart stores,” he said. 

Outdoor seating, hand sanitisation pods, and regular temperature checks of patients under medical circumstances have become a must. There are enhanced common areas now with seating zones, art installations, play areas, and digital screens, to engage visitors.

The effectiveness of experiential retail varies depending on factors such as location, target audience, and the nature of the products or services offered. Pop-up shops, in-store masterclasses, and hosting community events are great examples. 

Yukti Nagpal, Director, Gulshan One 29 Mall in Sector 129, Noida, said, “Leading retail brands employ data-driven algorithms for personalised product recommendations, AI chatbots for real-time customer support, and automation to refine inventory management. In-store analytics aid decision-making, while robotic assistants offer interactive guidance. Voice search, contactless payments, and geolocation marketing enhance convenience. Innovatively, a box office-free cinema offers digital ticket booking, epitomising seamless experiences. These advancements collectively heighten engagement, efficiency, and convenience.”

The experiences of malls and high streets vary across tier 1-3 cities. In tier 1 cities, malls often boast larger spaces and a broader range of high-end brands, luxury boutiques, and upscale dining options using architectural grandeur and opulent interiors. In tier 2 and tier 3 cities, malls are typically smaller in size and focus more on offering value-based shopping with family-friendly entertainment options such as multiplex cinemas, gaming arcades, and food courts. “Tier 1 city malls attract a more cosmopolitan crowd with diverse tastes, while tier 2 and 3 city malls cater to a mix of locals and tourists seeking a combination of shopping and leisure experiences,” said Uddhav Poddar, Managing Director of Bhumika Group.

A significant edge that malls overseas have is the presence of smart parking systems, which is an advanced technology solution that uses sensors, cameras, and real-time data processing to efficiently manage and optimize parking spaces within a mall's parking facility. “By providing real-time availability updates, automatic number plate recognition, and digital payment options, we can enhance the overall customer experience and reduce traffic congestion,” said Ravinder Choudhary, Vice President, Vegas Mall. 
Choosing Right Retail Tenants

DLF Avenues works with a diverse tenant mix including anchor stores, fashion retailers, electronics stores, food and beverage outlets, entertainment options, and service providers. This mix is carefully curated to attract a broad customer base. The selection processes are all driven by data analytics to understand shopper demographics, preferences, and traffic patterns to determine the most suitable tenant mix for a specific mall location.

We select anchor tenants strategically to anchor different sections of the mall, directing traffic flow effectively. “Our retail partners are always evaluated with flexible lease terms that allow for tenant rotation and experimentation. Short-term leases can help test new concepts and tenant partnerships. Short terms also allow evaluation of tenant performances regularly and replace under-performing tenants with more attractive options,” mentioned Shrivastava.

Restaurants a Necessary Add-on

With the double-income couples and changing Indian palates, kitchens have become smaller, and a fast-paced lifestyle has driven a preference for eating out. Factors such as peppy, trendy, multi-cuisine, fusion, and, most importantly, ‘Instagrammable food’ are pivotal. Thus, restaurants provide a plethora of opportunities for business growth in malls/high streets, luring foot traffic and enhancing experiences. Unique concepts, innovation, and established reputations guide selection. Diverse menus with high-quality fare, complemented by ambience and online presence, ensure satisfaction. 

The F&B hub titled COMMONS at DLF Avenue is part of their success story. With a variety of brands, the F&B hub helps extend customers’ stay at the mall. Increased foot traffic from a diverse selection of restaurants has attracted food enthusiasts. Top that off with live entertainment and themed dining experiences, and the target audience is duly served. “Some of the key factors considered while selecting wide range of restaurant in COMMONS are cuisine and concepts; brand fit, quality and reputation; menu and pricing; innovations; operational experience; aesthetics and design; and growth potential in our portfolio,” said Shrivastava.

In-store Activities

The Gulshan Group believes that organising diverse weekend activities, hosting regular events, and creating festival-themed mall décor excite shoppers and frequenters. Activities such as Cyclothone, Stand-up Comedy, Storytelling, Open Mics, Flea & organic markets, Salsa dance, competitions for kids, workshops, and live music bands help a lot. 

For DLF Avenue, online to offline transition in shopping has opened many an opportunity with in-store pickups for online purchases. Similarly, online platforms are being used to promote in-store events and deals. Flexible spaces allow gamers to indulge in gaming tournaments as well.

“We at Bhumika encourage our brands to leverage social media, influencers, and content marketing to connect with their target audience effectively. For example, a cosmetics brand within our mall regularly collaborates with local beauty influencers to create makeup tutorials and product reviews, which has significantly increased its visibility among younger consumers,” said Poddar.

Collaborations with local businesses, influencers, and event organizers lead to increased foot traffic and engagement. With user-generated content, malls can encourage shoppers to share their experiences on social media by tagging their location within the mall. User-generated content, such as photos and reviews, can attract more visitors and build a sense of community, ultimately leading to higher conversions as shoppers are influenced by the positive experiences of others. Geotagged posts can promote mall events, sales, and promotions to a wider audience, increasing the visibility of these activities and driving more foot traffic.

Crystal-gazing the future of retail in malls, effective use of digital content has become indispensable, evident with the increasing virtual store tours, product demos, and promotions across malls. That hooks prospects from generation Z and sets a good example for generation alpha, for whom Metaverse will be a norm, and who will hope for a futuristic experience replete with AI assistance wherever they leave their imprints.