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PROPERTY REPORT: MARKETING
Malls get the 'destination' makeover
Flurry of renovations carries a new emphasis on catering to customers - think comfy chairs in the food court
ANGELA KRYHUL
Special to The Globe and Mail
December 23, 2008
It could be considered ironic that shopping centres are often marketed as destinations for cutting-edge fashion - yet, landlords can let 25 years go by before giving their malls a major makeover.
In the Greater Toronto Area alone, malls such as Promenade, Fairview, Mapleview, Upper Canada and Scarborough Town Centre are either undergoing, or have recently completed, multimillion-dollar renovations. And landlords are going far beyond adding a new coat of paint. They are redesigning food courts so that people will linger over their meals. They're adding children's play areas and private nursing rooms for moms.
Increasingly, they are embracing green initiatives - and aren't shy about marketing themselves along that theme.
It's all about creating positive experiences so that shoppers not only feel good about spending several hours in a mall - but will want to come back again and again, those in the business say.
Landlords are "doing some nice stuff so that people are comfortable. They're trying to make [the mall] a destination ..." explains Larry Daer, senior construction manager at EllisDon Corp. of London, Ont. "They're trying to make the shopping experience one that you want to go back to."
Not only are malls trying to draw more loyal shoppers, there is pressure to keep up appearances when competing malls undergo renovations, Mr. Daer said.
EllisDon just completed a $90-million makeover of Fairview Mall in north Toronto that saw the circa-1988 interior design replaced with a fresh look that aims for "chic and urban," according to general manager Kevin Gray. The improvements include extensive landscaping, floral arrangements and lots of wood details, such as teak railings.
The food court was relocated to a more open area. "We now call it our Food Garden," Mr. Gray said. "It has a lot of natural sunlight; we've introduced a lot of landscaping. There is a variety of seating, from soft seating to high stool seating. When you go there, you feel as if you're dining."
The mall adjusted its tenant mix, including signing on retailers that sell at higher price points, such as the Apple Store, Hollister, Aéropostale and Bath & Body Works. And, realizing an opportunity to increase lunch and dinner traffic from the neighbouring office community, the mall's front façade was redesigned so that restaurants and outdoor patios now populate it.
"It's not just about selling stuff; it's about making it a fun experience," said Gil Small, general manager of Vaughan Mills. "Shopping centres are a meeting place."
The mall, located north of Toronto, built a private room for nursing mothers and it publishes a newsletter to promote a neighbourhood feeling.
As well, it hired a tourism manager this year to better market itself as a destination for out-of-towners, and is considering a shuttle bus service to ferry tourists from downtown Toronto. About 24 per cent of the mall's 13 million annual visitors are tourists, Mr. Small said. "We had 650 bus tours visit our mall last year."
With environmental sustainability on everybody's mind, a few landlords are promoting their green practices in the hope that consumers will be more loyal.
At the grand opening of First Capital Realty Inc.'s Morningside Crossing in east Toronto in September, it was touted it as the city's first green shopping centre because it was built to LEED (Leadership in Energy and Environmental Design) standards.
"We feel we have to do it as a good corporate citizen. We feel, eventually, it will become essential not only because regulation will force us [to build greener malls], but also because retailers will force us," said Sylvie Lachance, First Capital's executive vice-president and chief operating officer. "Already, we can see that some retailers are insisting on these characteristics. Retailers like Starbucks, for instance, are extremely inclined to value the space more if it is green."
And it makes good marketing sense to let consumers know that a mall goes the extra distance for the environment, she said. "This is, maybe, a new way of marketing the new shopping centres, and it comes from the desire of consumers to make a change with the environment."
There is evidence to support the idea that shoppers prefer green malls. Polls conducted by Calgary's Sunridge Mall found 61 per cent of shoppers are "somewhat" to "highly likely" to shop at stores and centres that are more environmentally conscious, said Sunridge's marketing director Claire Salaysay. "They have indicated in our research that they are more aware of the environment and are more likely to support businesses that are sharing their values."
Sunridge has a comprehensive marketing strategy that promotes its green activities. In 2006, when the mall underwent a $50-million redevelopment - its first since it opened in 1981 - it planned for an environmentally themed children's indoor play park. The park, built from recycled materials, opened earlier this year and promotes activities such as recycling, composting and planting seeds.
Last April, Sunridge built a four-room environmentally friendly home inside the mall that showcased green products sold by retailers there - from bamboo mattresses and bedding, to energy-efficient appliances and eco-friendly household cleaners. Sunridge encouraged shoppers to learn more about the mall's green practices by running a contest that included answering questions based on information displayed throughout the green home.
"One of the goals we had with that campaign was to promote our message about the environmental initiatives we have throughout the centre," Ms. Salaysay said. "From a marketing standpoint, Sunridge Mall is the largest shopping destination in northeast Calgary and having the environmental initiatives in the mall is a point of differentiation for us."
*****
CAST IN A NEW LIGHT
If there's a bright side to the retail outlook these days, it could be the lighting. Malls are renovating to make their spaces look new and bright, and that means getting rid of old lights that cast a yellowish glow, and replacing them with white, energy-efficient lighting, according to Larry Daer, senior construction manager for EllisDon Corp. "That's probably one of the biggest changes. The lighting levels are twice what they were before. It looks clean."
Malls are installing wood finishes and painting in neutral, earthy colours, he said. They are investing in new floor tiles, better directional signage, and they are reinventing their food courts, making use of natural sunlight where possible. They're adding more comfortable chairs, such as banquettes and soft seating.
Mr. Daer said malls are installing more customer service terminals that offer coat checks, strollers and babysitting. They're also keeping washrooms cleaner by installing stainless steel finishes that are more difficult to deface with graffiti. Outside, they're adding bike racks, benches and landscaping.
"They're listening to what the public needs and wants," he said.
Angela Kryhul
PROPERTY REPORT: MARKETING
Malls get the 'destination' makeover
Flurry of renovations carries a new emphasis on catering to customers - think comfy chairs in the food court
ANGELA KRYHUL
Special to The Globe and Mail
December 23, 2008
It could be considered ironic that shopping centres are often marketed as destinations for cutting-edge fashion - yet, landlords can let 25 years go by before giving their malls a major makeover.
In the Greater Toronto Area alone, malls such as Promenade, Fairview, Mapleview, Upper Canada and Scarborough Town Centre are either undergoing, or have recently completed, multimillion-dollar renovations. And landlords are going far beyond adding a new coat of paint. They are redesigning food courts so that people will linger over their meals. They're adding children's play areas and private nursing rooms for moms.
Increasingly, they are embracing green initiatives - and aren't shy about marketing themselves along that theme.
It's all about creating positive experiences so that shoppers not only feel good about spending several hours in a mall - but will want to come back again and again, those in the business say.
Landlords are "doing some nice stuff so that people are comfortable. They're trying to make [the mall] a destination ..." explains Larry Daer, senior construction manager at EllisDon Corp. of London, Ont. "They're trying to make the shopping experience one that you want to go back to."
Not only are malls trying to draw more loyal shoppers, there is pressure to keep up appearances when competing malls undergo renovations, Mr. Daer said.
EllisDon just completed a $90-million makeover of Fairview Mall in north Toronto that saw the circa-1988 interior design replaced with a fresh look that aims for "chic and urban," according to general manager Kevin Gray. The improvements include extensive landscaping, floral arrangements and lots of wood details, such as teak railings.
The food court was relocated to a more open area. "We now call it our Food Garden," Mr. Gray said. "It has a lot of natural sunlight; we've introduced a lot of landscaping. There is a variety of seating, from soft seating to high stool seating. When you go there, you feel as if you're dining."
The mall adjusted its tenant mix, including signing on retailers that sell at higher price points, such as the Apple Store, Hollister, Aéropostale and Bath & Body Works. And, realizing an opportunity to increase lunch and dinner traffic from the neighbouring office community, the mall's front façade was redesigned so that restaurants and outdoor patios now populate it.
"It's not just about selling stuff; it's about making it a fun experience," said Gil Small, general manager of Vaughan Mills. "Shopping centres are a meeting place."
The mall, located north of Toronto, built a private room for nursing mothers and it publishes a newsletter to promote a neighbourhood feeling.
As well, it hired a tourism manager this year to better market itself as a destination for out-of-towners, and is considering a shuttle bus service to ferry tourists from downtown Toronto. About 24 per cent of the mall's 13 million annual visitors are tourists, Mr. Small said. "We had 650 bus tours visit our mall last year."
With environmental sustainability on everybody's mind, a few landlords are promoting their green practices in the hope that consumers will be more loyal.
At the grand opening of First Capital Realty Inc.'s Morningside Crossing in east Toronto in September, it was touted it as the city's first green shopping centre because it was built to LEED (Leadership in Energy and Environmental Design) standards.
"We feel we have to do it as a good corporate citizen. We feel, eventually, it will become essential not only because regulation will force us [to build greener malls], but also because retailers will force us," said Sylvie Lachance, First Capital's executive vice-president and chief operating officer. "Already, we can see that some retailers are insisting on these characteristics. Retailers like Starbucks, for instance, are extremely inclined to value the space more if it is green."
And it makes good marketing sense to let consumers know that a mall goes the extra distance for the environment, she said. "This is, maybe, a new way of marketing the new shopping centres, and it comes from the desire of consumers to make a change with the environment."
There is evidence to support the idea that shoppers prefer green malls. Polls conducted by Calgary's Sunridge Mall found 61 per cent of shoppers are "somewhat" to "highly likely" to shop at stores and centres that are more environmentally conscious, said Sunridge's marketing director Claire Salaysay. "They have indicated in our research that they are more aware of the environment and are more likely to support businesses that are sharing their values."
Sunridge has a comprehensive marketing strategy that promotes its green activities. In 2006, when the mall underwent a $50-million redevelopment - its first since it opened in 1981 - it planned for an environmentally themed children's indoor play park. The park, built from recycled materials, opened earlier this year and promotes activities such as recycling, composting and planting seeds.
Last April, Sunridge built a four-room environmentally friendly home inside the mall that showcased green products sold by retailers there - from bamboo mattresses and bedding, to energy-efficient appliances and eco-friendly household cleaners. Sunridge encouraged shoppers to learn more about the mall's green practices by running a contest that included answering questions based on information displayed throughout the green home.
"One of the goals we had with that campaign was to promote our message about the environmental initiatives we have throughout the centre," Ms. Salaysay said. "From a marketing standpoint, Sunridge Mall is the largest shopping destination in northeast Calgary and having the environmental initiatives in the mall is a point of differentiation for us."
*****
CAST IN A NEW LIGHT
If there's a bright side to the retail outlook these days, it could be the lighting. Malls are renovating to make their spaces look new and bright, and that means getting rid of old lights that cast a yellowish glow, and replacing them with white, energy-efficient lighting, according to Larry Daer, senior construction manager for EllisDon Corp. "That's probably one of the biggest changes. The lighting levels are twice what they were before. It looks clean."
Malls are installing wood finishes and painting in neutral, earthy colours, he said. They are investing in new floor tiles, better directional signage, and they are reinventing their food courts, making use of natural sunlight where possible. They're adding more comfortable chairs, such as banquettes and soft seating.
Mr. Daer said malls are installing more customer service terminals that offer coat checks, strollers and babysitting. They're also keeping washrooms cleaner by installing stainless steel finishes that are more difficult to deface with graffiti. Outside, they're adding bike racks, benches and landscaping.
"They're listening to what the public needs and wants," he said.
Angela Kryhul
