Shopping malls dominate cities but millennials aren’t using them predominately for shopping.
The rise in the digital age has brought with it an increased number of shopping platforms. A success due to the convenience it provides being able to browse at any time of the day and shopping with the click of a button. There is no need to leave your sofa.
Despite this popularity there is still a need for physical shopping centres. They may however need to adapt to cater for the shift in shopping patterns. Real estate firm CBRE conducted research surveying over 5,000 people who fall under the millennial demographic. Understanding how this sector of society lives their life will influence the future of real estate hence it pivotal to take note of their desires.
The results of the study revealed that millennials spend 4.7 days per month shopping online. This is only marginally ahead of the three days that millennials spend in shopping malls every month. Whilst there is much that can be done at the touch of a button and escalating numbers interacting on social media platforms, shopping malls provide a social environment to meet and carry out errands that may not be possible online.
Dr Henry Chin, head of research at CBRE Asia Pacific commented, “In order to leverage on millennials’ spending habits, retailers are recommended to increase the experience-based element of their offering and focus on providing an environment for visitors to socialize and relax. In addition to increasing F&B, cinema and entertainment elements in their shopping malls, retail landlords should consider organizing more live events to attract millennials. However, they should also carefully manage their tenant mix to ensure they still cater to other generations”.
Further data from CBRE revealed that millennials spend two-thirds of their income on leisure activities. These statistics should not be ignored as the while the digital age does play an important role in everyday life, there is not going to be a complete eradication of the high street.