Entertaining customers for healthy returns

As malls in the region continue to diversify, it seems that the core motive of shopping seems to be quickly disappearing. We are being lured more by things that have little to do with what we would call 'normal' mall activities.

Never more so is this the case than at this time of year. This year's National Day celebrations were more colourful than I can remember in recent years. The move into December also brings with it the yearly seasonal festivities, and malls typically go into promotional overdrive. Moreover, as we edge closer to the new year, celebrations gather momentum.

That's not all. It's not so long ago that we were celebrating Eid, which was followed by Halloween and, for some, Thanksgiving.

All of these points of celebrations are in theory only different slots in our calendars. However, their proximity to each other means that malls can focus their attention on customer entertainment and, ultimately, retention. Most malls throughout the region now view a core entertainment space as an integral piece of their architectural hardware. As such it is becoming apparent that the more distractions in the mall there are, the more we will spend.

Now consumer entertainment isn't a new concept. It's just that more recently malls have turned it into an art form. And what's interesting about this development is that in terms of global trends, this concept really flies in the face of what is happening elsewhere.

In the US, for instance, malls that have been built relatively recently are either having to fill space that was once destined for entertainment purposes, or are simply closing and being subjected to a de-malling process, and re-opening as residential stock.

Growing concepts

But in this region the concept is growing. Typically, if there is an in-mall entertainment programme, we are more likely to stay longer. Later we typically feel that our visit has been enhanced, and in general we are also more likely to visit the mall again if we know that the event will be repeated. Crucially, we are also more likely to spend more.

It seems that throughout the Middle East, then, increasingly there is more and more to distract us away from the core aspect of shopping. However, in reality, our visits are much enhanced through the entertainment programmes that are on show. What this proves is that we are among a diversifying retailing culture. Along with the increasing use of the malls as surrogate meeting places, and areas of social and familial interaction, we also see them as a place that can offer an enhanced trip.

As consumers then we are happy, and because we have spent a little more time and money in the mall, the retailers are also happy. Who would have thought that fire-eating unicyclists and high divers could have delivered such widespread market balance?

The writer is head of GRMC Retail Services, Dubai.