"If we want things to stay as they
are, things will have to change. "
Giuseppe Tomasi di Lampedusa
Retail in the Time of Cholera

The covid-19 pandemic is inevitably leading us into another recession. No one is yet certain how dramatic it will be, but perhaps the downturn ahead of us will be the greatest one since the Great Depression. Pessimism and negativity dominate: „trade will never be the same again”, „customers will radically change their shopping habits”, „shopping centres will become deserted”, „consumers will move to the Internet”, „shopping centres will go bankrupt”.

We will try to show in this material – albeit only superficially – that most (if not all) of these predictions for shopping centres are simply not true. We will also try to provide some tips for shopping centre managers on what direction of action should be taken in the nearest future to increase growth when emerging from the downturn and during recovery.

Key Conclusions

1. most of apocalyptic claims are manipulation​

2. consumers will return to shopping centres​

3. tenants will not relocate to high streets​

4. SCs will not change their existing character and functions radically​

5. an online shop is not and will not be an alternative to a brick-and-mortar store​

6. radical catchment extension of the SCs’s is extremely important now

7. brand’s fame is now the strongest leasing determinant​

8. a large part of marketing must be devoted to innovations with real added value ​

Key Recommendations
1
Do Not Press the Panic Button​
2
Don’t Be Too Defensive. Don’t Be Too Aggressive​
3
Invest in Share of Voice (SOV)​
4
Think Like a Retailer, Not Like a Landlord​
Mediadem review If In This Covid-19 Times You…
…you are facing the following challenges:
  • adjustment of commercial real estate marketing to the owner’s business goals,
  • a change of your property’s positioning on the market as a product,
  • setting new priorities in the marketing budget,
  • lack of a long-term view of the effects of marketing efforts,
  • concerns about the effectiveness of your marketing activities (ROI),
  • lack of objective measures of your marketing activities,
  • issues with finance executives who perceive shopping centre marketing only as a cost
…and if you are looking for answers to the following questions:
  • If it is necessary to cut 20% of the marketing budget of our shopping centre, what should we cut in the first place?
  • Our goal is a 30% footfall increase after reopening. Where should we look for reserves?
  • What realistic actions (not declarations) affect the current and future turnovers of our shopping centre?
  • Which marketing activities deliver the best return on investment and when should they be implemented?
  • How can we optimize our marketing expenses and link them to the results?
  • What are our actual indicators of the impact of marketing on the turnovers of our shopping centre?
  • What investments in innovation (if any) in our shopping centre will bring the best longterm return in terms of consumer and tenant
…and, finally, if you want to be able to:
  • develop a sound post-pandemic recovery marketing plan focused on real results,
  • demonstrate the relationship between marketing activities and shopping centre turnovers,
  • replace statistical analyses with innovative results-oriented marketing activities,
  • justify your marketing budget in a language understood by accountants and financial executives,
  • predict the behaviour of consumers in your marketing plan
...we can help
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