It’s Time for Malls to Engage in the E-commerce Economy

Malls are by no means dead, but they have been largely excluded from the e-commerce economy. Mall tenants have traditionally owned direct consumer connections that translate into digital relationships. All of that is set to change as mall owners awaken to the potential to take ownership of the physical and digital experiences that consumers crave. As CEO of Placewise, Peter Tonstad is on a mission to unlock the power of malls to monetize beyond the square foot and forge long-lasting digital relationships with shoppers.

In this episode, Carol and Peter discuss what it takes for malls to build ownable shopper data assets and the long-term benefits. Peter shares compelling stats on how escalating participation translates into increased footfall and sales.

Takeaways from the interview:

• Why malls must engage in direct digital outreach now

• How to incentivize shoppers to share data

• How collective content marketing makes all the difference

• Why digital marketplaces will power the mall of the future

KEY TAKEAWAYS

Shoppers love the combination of physical and digital. That’s the winning combination of the future.

Digital is the core component to creating a relationship between brands and consumers. It establishes a relationship between malls and shoppers that we’ve never seen before.

That initial handshake between the shopper and the mall is key and digital is what makes it happen. You need to incentivize that handshake as much as possible so you can collect the data.

You have to give shoppers an incentive to opt in and the only good reason to opt in is to get proper money value or something you otherwise wouldn’t have access to. We have found that instant rewards are most effective.

Some developers require tenants to participate in the digital program. Once they do, they tend to stay with it because it’s so effective.

Relying on apps is precarious. Who knows how apps will be received in the next few years? You want to own your digital reach as you own your physical reach and have it be stable over time.

Malls must become part of the E-commerce economy. 20% of all spending is E-commerce and some of it will grow at the expense of physical retail. By 2050, it could be 50/50. Currently, that sales revenue is excluded from leasing agreements.

The ultimate position for the mall of the future is to become a digital marketplace. That would mean having all the offerings in the physical mall represented on the digital marketplace. Where the shopper can buy products across multiple brands and retailers with a single payment, one basket, and with an option to pick all of it up at a central location.