The headlines trumpet the news that malls are dying across the nation.
Having spent many years of my career working in one, I think that they deserve to die.
Not because malls are not a good idea, but because of the way that they were built, managed, and their rigid underlying business philosophy, in particular in smaller-scale cities.
With the recent Glasgow climate conference filling the headlines, I was surprised that as a northern country, it seemed like little attention was paid to examining the global impacts that our shopping habits have on the environment.
As a long-time retail manager, I would think that centralizing retail operations would make sense economically and environmentally if for no other reason than in having few people driving between the increasing numbers of standalone stores. However, there are other reasons as well.
The basic concept of a central shopping mall in smaller cities is sound.
- An indoor shopping experience that is climate controlled. People can drive to one place, park their cars, and enjoy a pleasant shopping experience. Including a stop for public transit helps even more to lower the environmental footprint.
- Having acres of paved parking at first seems to be counter-environment, as does the salt required to keep the parking lot clear in the winter. However, like many obstacles, there is an opportunity for wastewater collection and storm runoff collection and cleaning that would be easier than attempting the same thing at individual stores or strip malls.
- The issue with small city malls is that they did not work. Instead, malls in smaller cities are dying and urban retail sprawl is spreading around cities, big and small faster than ever.
What needs to change?
Attitudes.
We need to develop the concept that one shopping center can be more environmentally friendlier than the sprawl that has developed in many communities as the malls died. Rather than people driving to their city, getting in and out of their cars multiple times, the original concept still holds, but the execution needs to change.
Energy use and creation.
Malls have large electrical and heating requirements, no doubt. They also have large flat roofs that could easily accommodate solar panels. Solar Panel farms are becoming more common and much more efficient. The amount of power that mall solar roof farms could generate would dramatically help to offset their energy costs on a scale that is simply not possible with individual stores or strip malls.
Dual Entrances.
Malls using pentagon or hexagonal designs would share a “core” entrance for people using the mall. A second exterior entrance would also allow merchants to welcome people at different times and hours. In the past mall, owners have rigorously enforced mall discipline regarding hours. This concept may work successfully in large urban regions; however, being forced to operate in smaller urban areas all but kills smaller merchants in malls. Allowing more flexibility would allow smaller merchants to manage their payroll and other costs much more effectively.
Store Condominiums and Ownership.
Merchants should “own” their footprint, much as a condominium owner owns their home. There would be common fees at market value for their community, not like the exorbitant mall fees from the past. For a merchant, it should be less expensive to operate in the mall than to operate his or her own standalone business. For start-up merchants or “pop-up” stores, the option to rent or lease would still be an option.
Public Education.
The economic and environmental benefits of participating in a mall system should be front and center.
One-stop shopping saves the environmental cost of all of the extra driving with the inherent savings of pollution, less use of fuel, and fewer cars on the road at any particular time.
By maximizing the use of renewable energy like solar or wind turbines, the economies of scale make a mall much more efficient than strip malls or individual buildings
Fostering a sense of community within the mall merchants makes the entire mall stronger. These merchant relationships regardless of size would allow more participation in marketing and advertising events. As a secondary by-product, community fundraisers by groups such as cadet or scouts would benefit from focusing their resources in one location instead of multiple ones throughout the community.
Wastewater, snow that is removed, and storm sewers in a mall environment should be subject to treatment and this would be much easier than in multiple stand-alone environments. Initial costs would be significant, but over the life of the mall, responsibly dealing with run-off is good for the environment and sets a good business example as well.
Centralized garbage and waste recycling would be mandated as well. This standard would be more efficient due to economies of scale and would be easier to input back into the marketplace.
Some of the issues to fix
Anchor tenants have a natural role to draw people to the mall; however, all merchants in the mall should be complementary, not predatory to each other. High merchant turnover and empty stores are not healthy for any of the merchants.
Mall Owners must realize their merchants are partners, not subservient to the mall operators. One of the primary reasons for the exodus of merchants from small city malls was the high costs and high demands made upon them.
Mall operators imposed too many opening hours on smaller merchants. Having a reasonable amount of “core” hours is understandable; however, there must be an acknowledgment of the costs and staffing issues small businesses operate under.
Having a mentoring program to encourage and support “new” businesses is vital to developing new and replacement merchants. Coaching, workshops, and financial incentives would be the key to helping establish new merchants.
Mall operators should avoid having governmental offices in key locations. Government offices are not merchants and should be kept in a separate area from the primary merchant areas of the mall as they create people deserts when they are closed.
Anchor tenants are important, however, too many small malls do not have enough diversity in the store mix. Key building blocks of any small town mall should also include, if possible: at least one bank, not only for customers but also for the merchants; a drug store; a grocery store; a multi-screen movie theatre to draw younger people into the space; a hardware store; a workout gym; several restaurants or a food court with a variety of offerings. Incorporating space for an automobile repair garage would also be beneficial. The key point is to populate the mall with complementary merchants.
Encourage seniors to come and walk the mall. The employees of many merchants have negative attitudes towards seniors who exercise in the mall during the winter and seem to never buy anything. This shortsighted view hides the simple fact that the more people that are in the mall, the more “buzz” that people will feel. Traffic is the lifeblood of malls and anyone who wants to use the space should be encouraged to visit.
Social responsibility is an often-ignored reality. The mall merchants should not ignore people experiencing homelessness and food insecurity. In the winter, malls are natural warming centers and instead of ignoring or discouraging their presence, some space should be allocated so that the relationships are not adversarial.
Food Rescue. Grocery stores, restaurants all have significant amounts of food that is unused. Having a Food Rescue program set up with local community meal programs and food banks would divert this still useable and good food to vulnerable people and this would reduce the amount of methane that escapes from food that simply ends up in the landfill. Incorporating food rescue into the mall operation would build awareness of waste and is environmentally and socially responsible for all merchants.
The mall is a community hub. Canadians like to shop. Malls and merchants need to foster that sense of community. In a mall environment that is not only possible but should be nurtured and strengthened. Having reserved space available for community groups to use for meetings or activities is not only good for the community but it also brings more people to the mall.
Many small city malls have failed. Not because the basic concept is wrong. Many of these malls failed to adapt and were not flexible to the changing realities of the merchants they almost took for granted. Is it too late? Perhaps for some. For merchants and mall operators with vision, there is an opportunity in my opinion. Too many small towns have large half-empty buildings with aging infrastructure tying up valuable commercial properties with zero prospects of ever approaching their former glory.
Malls and merchants need to evolve and embrace a new reality that places environmental, social, and economic needs on an equal footing.
What do you think?
Paul.