Optimise Your Retail Mix, Optimise Your Value, Optimise Your Influence on the Local Economy

INTRODUCTION 

Shopping centres serve as more than just retail destinations; they are the modern-day community hubs where people connect, find entertainment, and escape the routine of everyday life. Creating the right retail mix involves understanding the needs of diverse customer groups and making a meaningful impact on the local economy. An effective mix should go beyond providing everyday needs to ensure accessibility, inclusivity, and sustainability, setting the stage for a thriving community space that resonates with all visitors.

BEST PRACTICES FOR CURATING THE RIGHT RETAIL MIX 

1. SOCIAL INCLUSIVITY: BEYOND COMPLIANCE

Ensuring that the centre caters to all members of the community, including those with mobility, vision, or hearing impairments, and neurodivergent individuals, is not just socially responsible but economically beneficial. A welcoming environment drives higher footfall and customer loyalty. Recent examples include local Highpoint Shopping Centre in Melbourne, which introduced an autism-friendly shopping hour with dimmed lights and reduced noise to create a more comfortable experience for neurodiverse customers. Another example is the Westfield London, which features extensive accessible facilities, including adult-sized changing tables and sensory rooms, catering to families with special needs. These implementations go beyond basic compliance to actively create inclusive and supportive environments. 

2. ENVIRONMENTAL BEST PRACTICES: A NECESSITY, NOT AN OPTION 

Sustainability should be central to both design and operation. This means using eco-friendly materials in fit-outs, optimizing energy efficiency, and integrating green spaces. Selfridges' "Project Earth" incorporates sustainable practices into all aspects of retail, including circular product initiatives like repair services and resale of pre-loved items. Another leading example is Kroger’s collaboration with Loop, which introduces reusable packaging for everyday products in select stores, helping reduce single-use plastic waste and encouraging sustainable shopping habits. Following these examples ensures that the centre stays ahead in sustainability standards, which is increasingly expected by eco-conscious tenants. 

3. POSITIONING AND ZONING: LEVERAGING ANCHORS AND IDENTIFYING GAPS 

Effective positioning draws on the strengths of anchor tenants and high-performing specialty stores. The right retail mix means balancing established brands with experiential offerings and ensuring that each zone in the centre serves a purpose. This requires:

1. Analysing Per Square Metre Productivity: Regularly review each zone’s performance. Low productivity could indicate a need to reconfigure the layout, change the tenant mix, or introduce a different category of retail. For instance, if larger-format stores are underperforming, splitting them into smaller specialty stores may enhance per-square-metre output. 
2. Zoning for Experience: Zones should provide a cohesive experience, such as fashion and beauty grouped together or fresh food outlets with adjacent dining options. Progressive examples include Italy’s Eataly, where grocery shopping is combined with dining, cooking classes, and tastings, creating a multifaceted culinary destination. Harrods in London is another example, where the department store now includes a wellness clinic, catering to the growing demand for health services within a retail environment. 
3. Addressing "Dead Zones": Identify underutilised areas by evaluating foot traffic patterns. Solutions may include adding activations such as pop-up stores, art installations, or biophilic design elements to create an inviting atmosphere

4. SUPPORTING RETAILERS: MORE THAN JUST LEASING SPACE

 A successful shopping centre invests in the growth of its retailers. Programs aimed at enhancing store productivity, marketing, and social media engagement are crucial. It is not about "spoon-feeding" but rather equipping tenants to perform at their best. For example, our own retailer support program has shown a 48% sales improvement among participants and turning previously ‘at risk” retailers around to be strong performers, proving that proactive engagement delivers results. Regular workshops, one-on-one consultations, and peer learning events can further strengthen tenant capabilities.

5. INNOVATIVE USES AND AMENITY ENHANCEMENTS 

Adding value goes beyond the retail mix itself. Incorporate elements that provide a differentiated experience:  

• Community and Cultural Spaces: Allow local artists to exhibit work, or create spaces for community events. This fosters a sense of ownership and belonging within the centre.
• Sensory-Friendly Areas and Quiet Zones: To cater to all visitors, introduce quiet seating pods or sensory-friendly spaces. For example, Toronto’s Union Station revitalisation includes dedicated quiet zones that offer respite from bustling public areas. 
• Biophilic Design: Integrating natural elements, such as green walls or indoor gardens, not only enhances aesthetics but also contributes to customer well-being, encouraging longer dwell times.

One prominent example of a precinct with strong biophilic design is Singapore’s Changi Jewel. Located at Changi Airport, this multi-use complex integrates nature and retail in a way that significantly enhances the visitor experience. Key biophilic design elements include:

• The Rain Vortex: This is the world's tallest indoor waterfall, surrounded by lush vegetation and creating a dramatic natural focal point in the centre of the space. 
• The Shiseido Forest Valley: This features over 2,000 trees and 100,000 shrubs, mimicking a rainforest environment and providing visitors with a connection to nature. 
• Canopy Park: Located on the top level, this area includes gardens, walking trails, and immersive experiences such as foggy bowls and sky nets, offering various ways to interact with the natural surroundings.

Another example is The High Line in New York City, an elevated linear park that repurposes a former railway line. It features:

• Extensive native plantings that change with the seasons, offering a dynamic landscape experience. 
• Natural materials and seating areas integrated into the landscape design, allowing visitors to relax amidst greenery. 
• Views of the Hudson River and cityscapes framed by the park’s foliage, providing a seamless blend of nature and urban architecture.

6. STRATEGIC TENANT MIX ADAPTATION 

Be ready to adapt the mix based on changing consumer behaviors and trends. With the rise of lifestyle brands and mixed-use retail concepts, some stores now offer multiple services. For instance: 

• Nike’s flagship stores in New York City offer not only retail but also customization services and workout classes.
• & Other Stories in Europe provides a mix of fashion retail with in-store beauty treatments and repair services.
• Eataly’s format combines grocery retail with dine-in experiences, cooking classes, and wine tastings, creating a multifaceted culinary destination.

Recommendations and Implementation Plan 

1. Short-Term (0-6 months):
   1. Conduct a thorough review of tenant performance by zone. 
   2. Implement low-cost activations to test new concepts in "dead zones."
   3. Introduce sustainability training workshops for tenants. 
2. Medium-Term (6-12 months):
   1. Reconfigure underperforming spaces based on initial reviews.
   2. Launch a retailer support program focused on improving store presentation, social media presence, and local marketing.
   3. Increase amenity offerings, such as seating pods and local art exhibitions. 
3. Long-Term (1-3 years):
   1. Continue to evolve the tenant mix, incorporating more lifestyle and mixed-use concepts.
   2.  Invest in infrastructure upgrades to enhance sustainability (e.g., solar panels, energy-efficient lighting).
   3. Develop strong partnerships with local charities and social enterprises to enrich the centre's community impact.

 Conclusion 

Optimising your retail mix is about more than maximising profit—it’s about creating value for tenants, visitors, and the local economy. By prioritising inclusivity, sustainability, and strategic tenant placement, you can transform your centre into a dynamic, resilient space that meets the evolving needs of the community. Together, we can build a future where retail centres not only survive but thrive as the heart of local life.