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Shopping centres must change before it’s too late

Frank Zumbo

by Frank Zumbo

02 Aug 05:40am

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Filed under: Consumer Affairs, Consumers, Online, Retail, Shopping

46 comments

Have you ever thought about what consumers want from their shopping experience?

Ailing sector… retail needs to realign itself, and fast. Pic: AFP

Well, identifying what consumers are looking for every time they go shopping is not as easy as it sounds. In fact, different consumers may want different things from their shopping experience.

Why would you shop at a bricks and mortar store or a shopping centre when you can buy the same product at a much lower price online? And online retailers don’t just have a considerable price advantage over bricks and mortar stores. Online retailers can offer a much broader range of products.

Have you ever gone into a Dymocks bookstore only to find that the book you are looking for is not there? Have you ever done an online search on your iPhone while at a Dymocks store only to find that the book is available online and you can get free delivery if you buy online?

So is it any wonder why bricks and mortar stores in a shopping centre are finding it increasingly difficult to compete with online retailers and are looking for lower rents or are simply going out of business?

Putting this all into perspective, it’s clear that bricks and mortar stores, as well as shopping centres, need to go back to basic business principles when seeking to compete with online retailers.

First, bricks and mortar stores need to look at their retail prices. There’s no doubt that “price” is a key issue for consumers. The worst thing for any retailer is for the consumer to feel ripped off. Consumers definitely don’t like to be ripped off and they will certainly feel that way if they buy a product at a bricks and mortar store only to find that the product is cheaper online.

And it’s getting much easier for consumers to find out if they are being ripped off. These days a consumer can, for example, be standing in a JB Hi-Fi store and do a quick search on their iPhone to find if the DVD, CD or computer is cheaper online. Not surprisingly, overseas DVD titles can be up to 50 per cent cheaper online from an overseas online retailer than they are in the JB Hi-Fi store.

The saving from buying online from overseas websites is so big that you would be silly not to think about buying online. And it’s likely to make very little or no difference if GST was imposed on overseas purchases under $1,000 which are currently GST-free.

Here, Australian retailers who think that imposing GST on overseas purchases under $1,000 will lead to a boost in local purchases at bricks and mortar stores are clutching at straws.

Certainly we can talk about seeking a level playing field and trying to impose a 10% GST on all overseas purchases, but that will make no difference if the overseas purchases are up to 50% cheaper than the same product sold at from bricks and mortar store in an Australian shopping centre.

Let’s also not forget the potential huge cost to the Australian taxpayer of the Federal Government trying to collect any GST on overseas online purchases.

Then, of course, we have the fact that Aussies consumers are so savvy that they can now go to Hawaii or South East Asia on cheap flights to buy all those designer labels at a fraction of what they can buy them at a Myer, David Jones or boutique retailer in an Australian shopping centre.

Next, Australian bricks and mortar retailers and shopping centres need to look seriously at their product range. Consumers are generally looking for a wide product range and are likely to be disappointed by the limited range offered by many bricks and mortar stores and shopping centres.

We know that a Dymocks book store will have a limited range because of limited floor space. So again, going online means that consumers have instant access to an almost limitless range of books. The same goes for products at, for example, a JB Hi-Fi, Myer or David Jones store in a shopping centre.

Clearly, bricks and mortar stores need to be very clever in not only delivering a wider product range but in getting loyal customers to keep returning to the store. Why don’t bricks and mortar retailers get together with their shopping centre landlord to offer all day free parking for consumers that spend more than say $100 at those centres having paid parking?

Why don’t bricks and mortar retailers or shopping centres offer their big spending in-store consumers a voucher for an amount of up to say $100 that can only be redeemed on their online website?

That would allow consumers access to a wider online product range, but it would make the retailer’s or shopping centre’s website more price competitive with other online retailers. It would also allow the physical store to become linked with the retailer’s or shopping centre’s online presence.

Of course, such measures are only temporary as we know that retail rents need to come down across abroad to try and keep bricks and mortar stores in the game. If retail rents stay as high as they have been, then bricks and mortar stores will continue to bleed and shopping centres will increasingly come under financial pressure.

Finally, there is the issue of convenience with consumers being able to shop whenever they want. We know that consumers can shop online at any time, but what about shopping centres?

Should shopping centres be allowed to stay open as long as their tenants want them to? That’s a simple question as in a truly competitive market it’s the traders or tenants who decide when to open their doors. So the trading hours issue is ultimately really one about what the tenants want as they will generally be the best judge of what their customers want.

In that regard, the matter of additional trading hours could simply be resolved by having a secret vote of all tenants in shopping centres conducted by the State or Territory Electoral Commission.

Once these independent results were known we would then know whether or not State or Territory Governments need to further extend trading hours for shopping centres in their State or Territory.

In the meantime, the harsh reality for bricks and mortar retailers, and shopping centres, is that what they offer consumers is negatively affected by the higher retail prices they have to charge consumers and by the limited range they are able to offer consumers.

Even before a bricks and mortar retailer opens their doors they are hit with rents from retail landlords and shopping centres. That means that the retail prices at bricks and mortar stores will obviously be inflated by the retail rent that they have to pay to the landlord or shopping centre.

In contrast, the online retailer is likely to pay a tiny fraction of the rent that the bricks and mortar stores have to pay and that means the online retailer can offer much lower retail prices to consumers when they shop online.

Clearly, online retailers have an enormous price advantage over bricks and mortar stores as the online retailers don’t have to pay to the ever increasing or inflated rents at a shopping centre. And that’s why shopping centres can’t keep their heads in the sand forever.

Most commented

46 comments

Show oldest | newest first

    • M says:

      06:51am | 02/08/12

      The writing really is on the wall for these guys.

      Reply

    • Juice is loose says:

      01:24pm | 02/08/12

      Agreed. The only things my family (and most of my friends) don’t buy on-line now days are clothes, cars, and houses.

      I had to go into one of these shopping centres recently and couldn’t get out of the place fast enough. I certainly didn’t get the feeling I wanted to spend any money there.

    • Mich says:

      07:06am | 02/08/12

      Other than the free parking, I don’t see how any of these suggestions can work.  Fact is, shopping centres can’t compete on price, range or convenience, and any centre attempting this will fail.  Instead, they should focus on the areas where they can offer a competitive advantage… service for one.  Training staff on product knowledge and customer service would be a pretty damn good start.  There will always be people who don’t have the time or ability to research online and will pay a slight premium for the assistance.

      Secondly, smarten up the food courts.  Get rid of the seedy Chinese bain maries and other fried crap and install some eateries where people might actually want to go to.  That and the cinemas at least will bring the people to your door.

      I would also think very carefully about what women might want and be prepared to pay a premium for.  Free or cheap child minding areas certainly influence where I choose to shop.  I know Westfield has personal shoppers but they’re not cheap.  Maybe they should offer free services like this if you spend a certain amount… I’m sure there are a million ideas but until these centres and major retailers remove their heads from the sands they will continue to lose profit.

      Reply

    • TheHuntress says:

      11:47am | 02/08/12

      Exactly my thoughts, Mich.

      I shop both online and bricks and mortar. What draws me to the traditional bricks and mortar store is the customer service and and staff product knowledge. Just yesterday I was vaguely wandering around the shops with no real intention of buying a new dress. I was browsing a rack when a lovely sales assistant approached me and gave me absolutely stellar customer service. Her understanding of the label she was selling, all the items in the range, knowing her customer at a glance - it was all finely honed (and I acknowledge this is not a typical experience). All in all I dropped a significant sum on a new dress and piece of jewellery, which was a great sale for the store and I walked away feeling well looked after with some new interesting pieces for my wardrobe. Had I been browsing online it is unlikely I would have bought either pieces.

      I would love to see some more traditional type restaurants in our shopping centres. I believe the food court has its place, but it would be nice to be able to sit down, be served and have a glass of wine. There seems to be fewer centres with actual restaurants in them.

      My son is now grown up enough to enthusiastically shop with me, but when he was 2 or 3 I would have given my right arm for somewhere to drop him for a couple of hours so I could quietly shop and try on a frock or two.

      Generally speaking I happily shop online for products that I use regularly, clothing that I can’t get in Australia or for the good sales. I still enjoy the shopping experience and I would be sad to see retailers (especially independant boutiques) shut down.

    • Emma says:

      07:24am | 02/08/12

      That is a terribly one sided article and only coming up with arguments supporting online shopping. I buy my ebooks online of course and some other stuff that I need. But those products dont even count as shopping for me. Online “shopping” has nothing to do with shopping for me. I love going out on a Saturday or Sunday, having brunch in the city at the waterfront, thinking of where I want to check out a new collection or what I would like to have. And then I spend hours strolling through stores and trying things on. So there is no way that your brick and mortar retailers will go away. Not for me.

      Reply

    • Rose says:

      09:26am | 02/08/12

      What you buy online is still shopping, just ask book stores etc whether they consider it shopping. Be honest, there is shopping you do online and some you do in the malls. I love online shopping, I can sit at home with my coffee browsing different sellers, pick the best price and have whatever I want delivered to my door. The only time I enjoy physically shopping nowadays is when I find a shop where staff have excellent product knowledge and provide great service, I will often pay the extra to shop there as they make it worth my while. Too often you get crap service, staff have no idea what they’re talking about and you walk out feeling ripped off. Retailers should note, if they want people to go into their shops they really need to improve the whole experience by training the staff better and doing what they can to attract and retain good staff.

    • Emma says:

      09:41am | 02/08/12

      Do you seriously pick shoes, handbags, jewellery and clothes online? I dont buy these things because I need them. I buy them because I get to spend money and for the experience.

    • n_dude says:

      12:20pm | 02/08/12

      I agree with you Rose. The service in Australian retail outlets is really bad compared to their American counterparts. I find most people here when you ask for help look at you as if you have just asked them to do somehting illegal. in the US, they have the same issue with online shopping, but at least people providing the service are firendly and polite (even if it is fake). In Australia they just give you filthy stares. That is why I avoid shopping in stores in Australia and go online or overseas.

    • Emma says:

      12:40pm | 02/08/12

      n_dude

      I think its the opposite. The assistants are lovely. They even remember me when its a store I visit more often. The coffee shops around my work know me by name, everyone is up for a little chat. The fashion store girls take the clothes off you and put in a change room for you so you can browse some more.

      Maybe its an attitude thing? When you smile they smile back.

    • Rebecca says:

      02:10pm | 02/08/12

      Online shopping may have lower prices, but I don’t like the idea of paying good money for something only to wait 2 weeks for it to arrive in the mail - with no guarantee that it will actually fit me or suit me. It’s too risky - I like to see things before I buy them.
      I also agree with Emma that the experience of shopping is great fun.

    • Rose says:

      12:31am | 03/08/12

      Emma, I’ve worked retail for many years and I am always very friendly and polite to retail staff. Unfortunately many shops have had staff numbers cut, they’ve reduced training and staff are just plain tired. In many shops staff don’t have the product knowledge that they need and they don’t know the little things that make a difference. When I find shops that do prioritize service and product knowledge I’ll always go back, and tell others. For example after two bad Harvey Norman experiences I can promise you I will never set foot in their stores again. I’ve always been pleased with JB HiFi and Good Guys so they are my first port of call if that’s the kind of stuff I’m after.
      And yes, I’ll happily buy clothes and accessories online, not really shoes, but my kids get them online. Online is great, it’s a different experience but still great. My daughter is currently very excitedly waiting for a package from the UK with clothes that are just that bit different to stuff available here in shops, and cheaper than what I’ve previously got for her and also with free p&h.
      So it’s quite simple, I’ll happily go bricks and mortar if the shops make me feel welcome and provide a good experience, and I’ll happily shop online as well, if shops want to increase my patronage they just need to earn it.

    • ace leo ace says:

      07:41am | 02/08/12

      Its simple marketing theory. The retailers can’t compete on price or variety and if they try they will send themselves broke. What they need to do is differentiate, repackage and market a more holistic experience that can only be gained by your physical presence. What I mean by this is compete in the areas where online can’t. As a previous commenter noted, offering DECENT food and amenities with a bit more atmosphere would be a great start. Focus on the fact that you can often “try before you buy” when in store and also offer easy returns if not satisfied. Also having a greater range of activities available might instil a sense of community rather than having this “get in, spend, then get out” feeling most have these days. It sounds a bit counter intuitive but retailers need to give up some of their profit margins to engage with customers more, if they don’t there wont be any profits to speak of at all.

      Reply

    • stephen says:

      07:48am | 02/08/12

      Quality matters too.
      Dymocks doesn’t have real books.
      They stock cheap table-top tomes and lots of self-help volumes.
      (Books, I suppose, our Athletes might read.)

      Reply

    • Jess says:

      10:27am | 02/08/12

      My Dymocks is awesome. If they don’t have a book in they will order it for me. Last time I ordered a book from there I only knew author, series and rough date. It came out in the USA on the 5th they had my copy by the 7th (a couple of weeks before they said they would). Dymocks also have different types of stores - two popular type book stores and one more academically stocked store depending on location.
      Dymocks is awesome!! I will always get the books I really want from Dymocks

    • thatmosis says:

      07:49am | 02/08/12

      I rarely shop bricks and mortar nowadays for anything other than groceries and then only at Aldi where I know the prices aren’t inflated and only once a fortnight. Everything else is bought online and saves us heaps, no hassles with parking or paying for parking, no long trips to buy and item they may or may not have, no ignorant shop workers, no annoying musac and a range that is unbeatable.
        Shopping centres have nothing to offer except to those people who like to look and then go home and buy online knowing they are getting the goods cheaper and hassle free or those who cant help themselves and must buy at every sale that come along regardless of whether they need those items or not.
        Usually people know in advance that they will need most things and with the speed at which goods are dispatched and delivered by online shopping outlets there is usually plenty of time to order in advance and it also takes away that impulse shopping the a lot of retailers rely on.
        Do i feel sorry for the demise of the shopping mall, to tell the truth no, as they have shown over the years that they are only interested in the money and not what the shoppers really want and the push by some to introduce paid parking is further going to reduce the numbers passing through the doors.

      Reply

    • M says:

      08:22am | 02/08/12

      The paid parking thing is really shooting themselves in the foot. Why offer more disincentive to go to your bricks and motar store? I reckon the shopping centres should have a look at reducing their exorbiant rents as well if they don’t want lots of empty retail space.

      And it’s been mentioned before but I feel it’s worth bringing up again, the majority of “sales staff” in this country are little more than till operators. Sure, you find the odd one that knows their product, but they’re few and far between.

    • thatmosis says:

      09:05am | 02/08/12

      You know what the really sad thing is though, jobs for the young will no longer be available because retail will slowly die and need a quarter of the staff they already have and the food industry like Macca’s etc can only have so many workers.Manufacturing as we know it is dying and Australia will be importing the majority of its goods from overseas as our businesses become uncompetitive. We will have no apprentices to carry on trades as most businesses who need tradesmen are facing either a slow down or complete disintegration. Tradies will become a thing of the past in the very near future unless Governments start to Govern for the people and not popularity.
        I know that because I shop online I am adding to the problem but its a matter of money pure and simple, I can buy online very much cheaper than in bricks and mortar and will continue to do so until the latter picks their game up, takes less profit and gives the people what they want, service and price. A good example of the problem with bricks and mortar is the “sales” that offer up to 50% off the retail price. Now I don’t know about you but if a company can afford to sell things at 50% off retail then why don’t they do that all the time. Is it not better to sell 10 items at a smaller profit than 1 item at a huge profit and lose customers. They cant tell me that their “sales” lose them money as this is not how business works but the mark up on some items when compared to overseas prices is beyond the pale. We are being ripped off and we are fighting back, hopefully.

    • M says:

      10:08am | 02/08/12

      I don’t have enough money to be patriotic. If I can get something I want/need online for cheaper then I will.

      Australian retailers have had it too good for too long anyway by locking in exclusive suppliers and letting the middle man dictate the wholesale price. Unless they can convince the wholesaler to take a hit to profits, the industry will die along with it’s out dated business model.

      Adapt or die.

      On the tradies thing, unionism killed manufacturing in this country. On the site I work on they have a $20 a day sand allowance, because they walk across 6 feet of sand from when they get off the barge in the morning. Now I don’t know about you, but to me that seems to be taking the piss, considering the already quite generous award they are getting. Militant unionism will ultimatly kill the goose that lays the egg. See our steel factories and our car manufacturers.

    • Tubesteak says:

      03:04pm | 02/08/12

      “Tradies will become a thing of the past in the very near future “

      I don’t think so. We’ll always need someone to build our houses, mine our minerals and fix our cars. These are all trades with varying descriptions (carpentry, tiling, painting, mechanic, fitter and turner etc etc etc).

      The trades won’t die out but demand for some may change.

    • thatmosis says:

      06:42pm | 02/08/12

      Tubesteak, have a look at some countries overseas that have imported labour to do their work for them as most have lost the ability to do it themselves. Its not inconceivable that this could happen here as the young people of today want to start at the top with the best wages and conditions but arent willing to do the hard yards and in this very difficult environment its a brave employer who will take on an apprentice that could very likely leave before his time is served. I had apprentices at my business and over 50% left because of the wages didn’t allow them to live the life they expected. Add this mind set to the way that Australian business is finding that taxes and the value of the Aussie Dollar is impacting on their ability to carry on a viable business and the future looks bleak

    • Kev says:

      09:08pm | 02/08/12

      M - $20 daily allowance for walking across sand? Next unions will be asking for a manual labour allowance because their job requires them to do some work rather than piss farting all day.

      While we’re on the topic of wages why not bring in commission based pay in some areas of retail? Sure it’s not applicable in supermarkets and other stores but they aren’t the ones that are struggling when there is an article about the woes of retail. Lower the base rate but pay out commissions based on total volume of sales for each staff.

      If you don’t make that many sales because you’ve pissed off the customer with your rudeness or your woeful lack of product knowledge then you don’t get paid as much. It’s a win win because you are rewarding staff who add value to the business by making sales and you also improve the chance of bringing in repeat customers because you are developing a rapport with them.

      My girlfriend buys clothes and accessories from a boutique store all the time because she’s developed a rapport with the owner and she’s said many times she could buy some of the things there online at a discounted price but chooses not to because she values the customer experience.

      If boutiques have done this for years why can’t the bigger chain outlets? If you can’t compete on price be imaginative and think of other ways to win over the customer. Read any of these articles about retail woes and in the comments you will always see complaints about the pathetic standard of customer service. Do something about it. It’s your business and marketing is part of being a business owner. If you can’t even do that without whining for government intervention then sell your business and go get another job.

      Don’t blame the low prices of online shopping for your problems in bricks and mortar retailing. If anything online shopping has exposed massive problems in the way traditional retail is done in this country and you’ve got yourselves to blame.

    • Tubesteak says:

      08:06am | 02/08/12

      Times have changed. These guys can’t really compete anymore. Realise that.

      Reply

    • Josh Josh says:

      08:41am | 02/08/12

      I’m sure bricks n mortar stores would also have an online equvalent. So they should be able to give the same competitive price, if the book isn’t avaliable, their online version will dispatch it to you free delivery asap. Provide extras - Meet the author sessions, children’s activities, buy 6 books get the 7th one free etc. Throw in free parking, movie tix discounts etc and people will come.

      Reply

    • Mayday says:

      08:49am | 02/08/12

      We also have the self serve checkouts in supermarkets now and more shops are asking shoppers to pay for plastic bags, considering service is almost non existent the experience really is becoming just another chore.

      Westfield has just added to the boredom, most of their stores stock the exact items in every outlet so there is no real variety or choice available.

      Reply

    • Anna C says:

      10:27am | 02/08/12

      Your right Mayday, that’s exactly what I hate about shopping centres.  You go to every shopping centre around Sydney especially Westfield ones and they seem to have exactly the same stores selling you exactly the same shit.  What’s the point of going from one shopping centre to another when they are exact clones of one another?

      Also why aren’t there any stores selling antiques, vintage or unique stuff in these shopping centres???  I don’t want to have the exact same stuff as everyone else.  I’m bored with these places and would rather stick a fork in my eye then go there.

    • Charlie says:

      09:14am | 02/08/12

      I giggle when I hear a big chain crying poor due to overheads causing them to push their prices up when they have 3 ‘megastores’ within a few KM’s of each other.  I think they need to start looking at their model.

      Reply

    • Miranda says:

      09:37am | 02/08/12

      I would disagree about more choice being better as a blanket rule.

      My favourite stores tend to be smaller clothes shops or independent book stores, where they deliberately curate a smaller but selective collection of products so you don’t have to wade through a whole lot of dross before finding something you like. I have discovered countless pieces of clothing and authors I might otherwise have missed out on.
      I would classify this under customer service, which you don’t get with the online experience.

      Reply

    • Gregg says:

      09:43am | 02/08/12

      This is a bit of a rehash Frank of an article by yourself I think it was a few weeks back and the outcome is much the same.
      Increasing online purchases will lead to the demise of shopping centres as we know them for retailers having shops have costs to be met just as it costs money to develop a shopping centre, both likely far in excess of what online infrastructure is.
      So shopping centres will change over time, possibly just supermarkets, food malls, entertainment and a smaller number of shops that offer sufficient interest for people to see and buy rather than online where you never quite know about quality of some stuff until you get it.

      Reply

    • Hanzel says:

      09:56am | 02/08/12

      Ideally, all shopping will be done online in the near future and the old shopping centres will be dismantled and turned into off-leash dog parks.

      Reply

    • Bomb78 says:

      11:03am | 02/08/12

      I want to turn my local mega-mall into a Skirmish field/Go Kart track. I can hear the investment bankers who funded it choking on their lunches at the thought.

    • Emma says:

      11:08am | 02/08/12

      NOOOOOOO. And not more dogs please. There are more than enough already out there.

    • SKA says:

      10:42am | 02/08/12

      Free parking definitely a start! Not a lot of incentive to go to places like Chatswood where you only get 2 hours free! Saw Batman the other day and while I got an extra hour, still ended up paying $6 for parking (was 20 mins over or something pathetically small…) so decided staying for dinner somewhere was a bad and costly idea.
      I do a lot of online shopping because of price and availability (a lot of the stuff I buy just isn’t even available here - a lot of American clothing stores for one and the makeup is so much cheaper overseas, we’re talking half the price, even GST wouldn’t kill the value of that!) I do still enjoy the occasional shop in a bricks and mortars store. Why? Instant gratification sometimes (I could order that dress online but I don’t want to wait a week, find it doesn’t fit me properly then go through the process of sending it back as well as pay shipping that tends to be higher than international shipping costs). Other times it’s the full experience. I.e. when I go to a Lorna Jane store, the staff there remember me, chat to me, make suggestions about sporting events coming up they think I’d enjoy. Same deal with T2 plus T2 staff often send me home with yummy samples to try. The Wittner staff are also really friendly (and honest… I had one girl pull out two different types of shoes for me, told me which one was likely to be more comfortable and actually was truthful about what looked good and what didn’t on me). The service these stores offer is regardless of whether I buy something or not and because they generate such an excellent experience, I often do end up buying more than I intended (but the staff are clever, it’s always stuff that you are happy you got rather than things you get home, regret and hate). It’s also nice when there are events on at the shopping centres or promotions - spend and enter to win, catch a free show at the same time as your shop, celebrate <charity of choice> day. On a wet day, it’s a nice activity with friends. Browse nice things together, have a nice lunch in one of the cafes, stay dry and warm.
      There is a place for retail if it remodels itself. I’d recommend stores like DJs and Myers take a look at how places like T2 operate. They’ve thrown away so many staff members that customers often give up trying to buy things because it is too hard finding someone to serve you.
      Of course… dropping prices to some degree would help - definitely dropping store rent prices and some stores should consider that they don’t need to have 2 outlets of their store within a 5 minute walking distance of eachother!

      Reply

    • Daylight Robbery says:

      10:55am | 02/08/12

      Ive worked in retail, in small business we competed with some of the biggest retailers in the country based on excellence in service.

      Our market wanted to know how to use the product, where to use the product etc. 

      We had not one shop in a shopping centre as we were at the mercy of positioning in the centre which would be shifted regularly at the direction fo the centre. 

      There was also the Architect charge and the exhorbatent fitout charges.

      There appeared that rents would rise if 10% of businesses werent closing their doors at any one time.

      Hence I havent been to a centre for years now except maybe for groceries purchase which there is less choice outside centres.

      If you are small business you should have a bricks store and shopping cart. You will find many people have alreayd made their decision when they walk in the store.

      If a company is not prepared to give you the same price as bigger stores online or enough margin to make a living dont stock it.

      Reply

    • local handyman says:

      11:36am | 02/08/12

      A drive in landscape supplier will have most of the bricks and mortar needed. If not they can have your order arranged to pick up. Buying this stuff on line will cost your house in freight charges.

      Reply

    • Lucas says:

      11:51am | 02/08/12

      I’ve been to plenty of shopping centres around the world and the big dud factor here in Australia is that there is no reason to go to the shopping centre other than to shop. As @ace leo ace mentioned, the food courts are normally average.
      I recently had the pleasure of visiting Terminal 21, which is a mid range centre in Bangkok, Thailand. The entire complex is themed with airport references and the idea is that each level is a separate country. The restaraunt level contains actual proper restaurants with good cuisine from lots of places around the world and a combination of sit down meals and quick eats. 3 types of public transport feed into the nearby intersection. There is a cinema complex on the top floor, and lots of retailers across the rest of the centre.

      The point of difference is that the place is fun to visit, and is worth going even if you don’t actually want to buy anything. Of course people then spend money at the centre and business is booming!

      When going to the shopping centre becomes an experience unto itself, they will regain competitive advantage, but if the centre only offers shopping, consumers will seek out the best deal only.

      Reply

    • P. Walker says:

      12:04pm | 02/08/12

      A couple of further points.  I went shopping with my wife as she needed new clothes.  Wow what a bloody pig sty women’s’ clothes stores are.  Let’s face it, you know your size, but one has to browse through racks and racks to find that size.  They are all exhibited in the “range”.  Why not have racks sorted into SIZES so you don’t have to waste bloody time looking at every damn article!!!
      Another thing the Gerry Harveys of the world could do is offer to take your old item away when you need delivery.  It’s getting harder and harder to rid yourself of E-waste.  I don’t ever update for this very reason, only when its absolutely buggared.  Stores, make it easier to shop. 

      I bought an exercise machine from OO and a part was missing from the console.  Emailed them, they answered in a couple of hours with that part on its way.  Delivered in 2 days!  Can you imagine the 3rd degree questions you would need to satisfy a suspicious store attendant?

      Go the on-line for me!

      Reply

    • M says:

      12:21pm | 02/08/12

      I’m hearing you on the E waste thing. I’m not replacing my LCD tv until it’s rooted.

    • Craig says:

      12:16pm | 02/08/12

      This article starts well but goes off the rails where it suggests it is all about price.

      In studies down over the last few years - reflecting studies over the last 40 years - price barely makes the top five reasons people choose to shop, or not shop, at given stores.

      Far more important is style, range, product availability and,most critical of all, customer service.

      Frankly this is just as well for retailers because price is often an area they have little control over. It is pretty much guaranteed that Aussie retailers cannot match the price of online suppliers due to the cost of rent, storage, staff and supply chain (not to mention the restrictions in their customer reach through both geographic proximity and opening hours).

      Retailers need to keep an eye on pricing, that’s true, however to compete and remain relevant they need to refocus on the areas in which they have a competitive advantage. Personal service, availability and the ‘touch’ factor.

      They can either become a physical showroom for an online store, removing physical customer service but delivering it online while letting people touch, smell and try their wares - like display homes or high end automobiles - but with the benefit of instant gratification if people choose to buy right away (perhaps at a price premium) rather than have goods delivered.

      Or they can become a customer service Mecca - where customers can justify te price through the availability of personal service from knowledgeable sales people (a tactic Bunnings is already employing to great effect). Shop assistants with no training & a bad attitude employed to sweep and stock don’t have the skills or passion to treat customers as though they were special, and many stores cut first on staff training, creating a downwards spiral,

      People will pay more to buy goods immediately, and for good service. Competing only on price, by cutting service staff, stock on hand & range, will not get physical retailers to the price point where they can compete with online stores, but it will drive them out of business in the attempt.

      Reply

    • epg says:

      12:27pm | 02/08/12

      Bricks and mortar stores have 2 MASSIVE advantages over online retail, but many seem to be ignoring them
      1. Customers can physically handle and try out the products, and take them home immediately.  If you can try on an item of clothing, and experiment with some different accessories in store, or actually use a product and compare the actual performance of different products and buy the one that is most suitable and will be used the most you will actually save money (by not purchasing items that sit in the closet, or don’t do quite what you thought and then you end up buying 2nd or 3rd versions)
      2. Expert and enthusiastic staff that can genuinely help a customer work through the options and select the right product

      But most shops don’t capitalise on this - mostly by being understaffed, or having poorly interactive displays etc etc

      Reply

    • Robert S McCormick says:

      12:43pm | 02/08/12

      Waht I loathe about Shopping Centres, particularly the Westfield ones, is the god-awful, boring “Sameness” of them all. The only variations between them is their size.
      Once upon a time when you went to Town you had an amazing choice of places to browse & then shop.
      When Shopping Centres started they were all different. Different bakeries, different clothing, food, hardware, homewares, cafes, everything - including the music!
      Thanks to some not-so-bright “Bright Git” that all changed.
      Today what do we get? No matter where they are, no matter how big, how new, how state-of-the-art, how glitzy they are all the Bloody Same.
      Every one has Myer, David Jones, Baker’s Delight, Coles, Woolworths, House & Garden, K-Mart, Target, Big W, Cinema Complex showing exactly the same films as every other centre, BB’s Cafe, Lenards Chicken, Rivers,Sporting Goods, Rockmans
      It was not so long ago that some of the older centres started tossing out their old tenants: The Independent Butchery, Chicken Shop, Chemists - many of whom had been lured to those centres by the owners when they started building them. Our Local Stores were told how these new centres would make shopping a brand new experience, cool in Summer, warm in Winter, customers would be able to get from their cars to the shops without getting wet. It all sounded great.
      Then Bright Git got in on the act. She/he decided that it would be a great idea to get rid of those businesses run by locals, some with generations of families as customers, and replace them with mindless, impersonal, largely unfriendly National Chain Stores. Stores where the staff basically could not give a Tinker’s Cuss if you shopped there or not.
      So, as leases expired the Management of those ghastly places forced their Founding Tenants out. Massive increases in rents were enough to do it. Those Founding Tenants left & in came the chains & franchise shops with their Head Office imposed High Prices.
      In also came the rudeness, the impersonal, the unfriendliness but above and beyond all that in came Boring, Boring, Boring.
      Not only are the shops themselves boring but so are the goods they carry. They are all the bloody same.
      Walk into any Westfield & once inside you could be in any city in Australia - or anywhere else for that matter! The only difference would be instead of Woolies & Coles you might have a Tesco or Sainsbury’s, et al. and the human voices, if you could hear them over the screeching, piped “music”, would be different.
      Shopping Centres owners can stick them, hopefully, where it Really hurts!

      Reply

    • Kev says:

      02:36pm | 02/08/12

      If bricks and mortar owners really can’t think of other ways to make their stores and products more attractive then they should really think of getting into another line of work seeing as marketing and making your product or service stand out from the competition is part and parcel of running your own business.

      If you can’t compete on price then think of other ways to compete such as customer service and experience, all things that a customer can only receive if they come into a store. On top of that start paying retail staff who excel at being sales people on a commission basis if it’s possible that way you reward those who do well and not those who piss fart around.

      Reply

    • Daylight robbery says:

      11:18pm | 02/08/12

      @Kev Your right, there is a lot of store owners that have done the same thing that run a messy store covered in dust.

      Yes, there is more stores working on wages plus commission system.  The USA is big on this with specialist sales people in camping, etc

      A lot of businesses have not taken on board an online presence not realising that there is a rapid global market eating their market share. 

      There is a lot of Australian stores that compete with online stores overseas once you consider postage and other potential currency costs.

      Many products overseas have the same name but are of different quality and warranty to suit different markets and warranty compliance in particular countries.

      I believe 10% of retail is online; 5% of that online sales figures are overseas. ABS has just started next level onlines sales data.
      Its only going to grow from here.

    • Bizzo says:

      03:50pm | 02/08/12

      In a way i feel sorry for the bricks and mortar folk.  They, in the end will go the way of the horse and buggy.  Time moves on.  But the most amazing thing for me, as person who has never actually run a business, is how much the middlemen must be getting in the supply chain.  I understand that the retailer has to make a profit, but surely the difference between what you can get it online to at retail can’t be to them.  I’m old enough to remember the great shops in the ‘Main St’ and sort of agreed at the time to everything coming together in the shopping centres.  I’m sorry for thinking that was a good idea.

      Reply

    • Kym says:

      07:02pm | 02/08/12

      I like to shop onliine and I would like to shop more on line in Australia but the Australian websites are hopeless. Most often there are no prices or its just there to direct you to the Brick/mortar shop. BTW can’t we find another word that means ‘Bricks and Mortar” but is a lot shorter?

      Reply

    • OchreBunyip says:

      07:22pm | 03/08/12

      “offline” as opposed to “online” stores, or we could go Gibson and have “hot” and “cold” sites.

    • Daylight robbery says:

      05:19am | 04/08/12

      @Kym
      Unfortunately Kym a lot of businesses still don’t take an online presence seriously.
      Many have their grandkids to whip up a website with digital feng shui of steeple chase and look of a bad finger painting.
      Bad merchandising happens online too and all the same excuses come with it.
      Now is the time for many small retailers to grab customers from the whole world yet they look like rabbits in headlights of life with the standard ‘Huh’ when asked what their strategy was.

      Digital myxomatosis is coming

 
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