Transcript
RetailRetail
S.Shriram
www.mymilestogo.com
The Road less traveled…
Mall Management
PGDBA, RAI – Pondicherry UniversityPGDBA, RAI – Pondicherry University
Bangalore Management Academy
March – May 2010
S. Shriram
Course Objectives
To understand the concept of malls, to
understand the different formats and types understand the different formats and types
of malls, to introduce the various policies
and procedures adopted in mall
management.
The Plan
Sl. No. Topic Duration
1 Introduction to Mall Management 3
2 Project – First sight 3
3 Process of Mall making 3
4 Mix Planning & Circulation 3
5 Project – Tenant mix 3
6 Promotions and Advertising 3
7 Project – Marketing 3
8 Guest Lecture 3
9 Facilities Management 3
10 Project – Dream Mall 3
Mix Planning and Circulation
Mix Planning Retail Mix planning is among the most complicated processes in Mall Management. This
involves studying and analyzing the market, short-listing, negotiating and finalizing
rentals with prospective Retailers and most importantly zoning.
Zoning in Mall Management involves placement of various Retail concepts based on the
• demography of the market
• size of the Mall and• size of the Mall and
• needs of consumers.
Mall Planners spend 6-12 months in this process as this will decide the future and
success of the Mall. Needless to say, improper mix-planning and zoning will ensure
continued deterioration of the quality of footfalls, resulting in lower conversions.
Steps in Mix-PlanningMall planners focus on the following key points while planning the mix
• Anchors
• Mini-Anchors
• Vanilla Stores
• Others
Anchor, as the name suggests are the ones who attract maximum footfalls into theAnchor, as the name suggests are the ones who attract maximum footfalls into the
Mall. They are among the primary reason why shoppers visit the mall. Usually, shoppers
visit the anchors atleast once every 4 weeks.
Mini-anchors are secondary or smaller anchors - those which also attract reasonable
number of shoppers & the frequency of visits to these outlets is once every 6-8 weeks.
Vanilla Stores or Exclusive Brand stores are destination stores by themselves, having
not more than 4-5 in every city. Shoppers visit such stores to shop exclusively within
the label or brand.
Steps in Mix-PlanningAnchors are then classified on the basis of the following
�Retail
�F&B
�Cinema
�Entertainment
Usually, large Malls have one anchor in each of the above categories, but there could
be exceptions. There are malls that have more than one anchor in every category and
there are those which may not have anchors in all these categories.
Successful Malls need to have a balance of anchors among the above categories.
AnchorsAnchors are placed in a Mall on the basis of design and layout of the Mall. Mall
structures could be in the shape of a square, rectangle, circle, and could be linear or
vertical. Anchors should be spread over all the floors such that shoppers move around
the Mall. Usually and ideally, Anchors must be facing the road and should also be
accessible from all sides of the mall if it has multiple entrances. The entry into the
anchors must be easy and visible from the min areas of the mall.
Also, anchors across categories are not placed next to each other. The main reason for
this is that shoppers must walk around the mall areas to find and enter the malls.
There are disadvantages in having multiple anchors too, main ones being congestion of
vehicles and people in the central areas, confused positioning of the mall and so on.
Needless to say, Anchors make or break the mall. They are the identity or face of the
Mall and Mall planners spend a lot of time to ensure that the anchors are best in class,
while also seeing through that they cater to similar target groups.
AnchorsThere are various types of Retail Anchors, lets see then one by one;
� Department store
� Hypermarket
� Electronics / Furniture
� Books, Music & Leisure
Other anchors include
• Food Courts
• Specialty Restaurants
• Multiplex
Mini anchors include
• Supermarkets
• Exclusive Stores
• Discount Stores
Department Stores
Department StoresLarge Format stores that cater to the entire family with a wide assortment including
Apparel, Footwear, Home needs, Food and Entertainment. Among the fastest growing
formats, Dept. Stores are spread (in India) between 40,000 to 100,000 sqft in area.
Examples:
• Shoppers Stop
• Lifestyle• Lifestyle
• Westside
• Pantaloons
Dept. Stores are growing in popularity, thanks to the affordable luxury that Indians are
embracing in recent times.
Hypermarkets
HypermarketsLarge format Retail operations, that combine Discount, Supermarket and Warehouse
Retailing principles. Includes additional products such as Furniture, Clothing, Household
appliances, etc. Hypermarkets are spread (in India) between 40,000 to 200,000 sqft in
area. Examples:
• Big Bazaar
• Total
• Star India Bazaar• Star India Bazaar
• Metro
Hypermarkets are gaining ground mainly due to increased awareness of savings – a
concept that is becoming important in today’s scenario. When large quantities are
purchased by the Retailer from the manufacturers/Vendors, it gets huge discounts which
is passed on to shoppers.
Electronics & Furniture
Electronics & Furniture Furniture
To cater to the ever increasing needs of household goods and homeware, a new breed
of large format Furniture stores are being developed. These stores are spread (in India)
between 40,000 to 80,000 sqft in area and attract large families with diverse needs.
Examples:
• Home Town
• Home Stop• Home Stop
Electronics
Shopping electronic products and appliances was never so easy, thanks to the new
league of such stores that are coming up all around. Product range include most basic
products such as Iron machines and mobile phones to high-end products such as LED
and Plasma Tvs, Home theatre systems, etc. Examples:
• Croma
• E-Zone
Books, Music & Leisure
Books, Music & Leisure
Large format stores that combine categories such as Books, music and leisure products.
While these categories are neither fully impulsive nor totally planned ones, they
attract significant shoppers into the mall and their stores.
Such stores also stock other product categories such as stationery, home decorative,
perfumes & cosmetics. These stores are spread (in India) between 4,000 to 20,000 sqft
in area and attract large families with diverse needs.
• Landmark
• Odyssey
• Crossword
Food Courts
Food CourtsLarge areas that include a number of outlets serving various varieties of F&B options at
affordable prices. The trick to success is to balance the offering such that all major
varieties of local, regional and international cuisine is available under one roof
These stores are spread (in India) between 10,000 to 20,000 sqft in area and attract
large families with diverse needs.
• Transit (The Forum Mall)• Transit (The Forum Mall)
• Pit Stop (Garuda Mall)
• Palette (Mantri Mall)
Specialty Restaurants
Specialty RestaurantsSuch restaurants that serve single-origin/multi-cuisine offering which also double up as
a place that an entire family can enjoy. Most popular in India include Chinese, Italian,
and of course Indian (regional delicacies).
National and International chains could be found in most malls today. These outlets are
spread (in India) between 1,000 to 4,000 sqft in area and attract large families with
diverse needs.diverse needs.
• McDonalds
• Pizza Hut
• Geoffrey's
• Chilies
Multiplex
MultiplexA new trend in India over the past decade, a multiplex acts as an important
entertainment anchor to the mall. Clubbing movies with fun and frolic, Multiplex is a
family entertainment centre that offers something for everyone in the family. Movie
timings are sporadically such that the common atrium area is used by visitors to all the
screens simultaneously. Needless to say, Pop-Corn, Colas and other F&B options are a
big draw within the Cinemas.
Multiplexes usually have 4-6 screens and are spread (in India) between 20,000 to
50,000 sqft in area.
• PVR
• Inox
• Fame
Mini Anchors
Supermarkets
SupermarketsRetail Stores, with low-cost, low-margin, high volume, self service operations, that
include Grocery and Household needs. Possibly run on a Hub and Spoke model, with a
Distribution Centre catering to a cluster of Stores, situated in a particular region or
city. Supermarkets (in India) are usually spread between 4,000 to 10,000 sqft in area.
Examples:
• Foodworld
• Spencer’s• Spencer’s
• Food Bazaar
• Nilgiris
Supermarkets are among the oldest and fastest growing formats in India. After
successfully covering the large metros, Retailers are now focusing on Tier II and Tier III
cities.
Exclusive Stores
Exclusive storesRetail Stores that carry a narrow product line, but with a deeper assortment. Cater to
specific needs by offering more variety and specialized products and services. Exclusive
Stores are spread (in India) between 4,000 to 15,000 sqft in area.
Examples:
• Benetton
• Levis
• Raymond• Raymond
• Musicworld
• Adidas
• Bata
Exclusive Stores have always been popular in India since the 1990s, when Brands
started to look at visibility as a key factor for mindshare.
Factory Outlets
Factory OutletsRetail Stores owned/franchised and operated by Manufacturers/ Franchisees that carry
a wide range of products that include surplus stocks, outdated models, and discounted
upto 50% on market prices. Factory Outlets are spread (in India) between 10,000 to
60,000 sqft in area.
Examples:
• Brand Factory
• Loot Mart• Loot Mart
• Exclusive Brand Stores
Factory Outlets are gaining popularity in India mainly due to the growing middle class
segment – one that is not so fashion and trend conscious. One can see many factory
outlets dotting neighbor hood areas all around the country in recent times.
Miscellaneous Other formats that are commonly found in Malls include
• Play pen for Children
• Gaming Zones
• Outdoor (Cricket,Basket Ball, skating)
• Indoor (Billiards, Computer Games)
• Car Washing facilities
• Banking Facilities• Banking Facilities
• Forex & ATM
• Spa Facilities and Salons
• Gym, Weight Reduction & Parlors
ZoningTypically, a Mall will have the tenant mix as follows - if a Mall has a total area of
10,000,000 sft, then a proposed break-up would be as follows;
• 25% of space for Retail Anchors (2,50,000 sft)
• 10% of space for Multiplex anchors (1,00,000 sft)
• 10% of space for F&B anchors (1,000,000 sft)
• 25% of space for Vanilla Stores (2,50,000 sft0• 25% of space for Vanilla Stores (2,50,000 sft0
• 30% of space for Parking, Circulation and other amenities (3,00,000 sft)
While the above is only a benchmark, it cannot be considered a thumb-rule.
Email: shri611@gmail.comTwitter: theshriram
Web: www.mymilestogo.com
Happy Retailing…
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