As online shopping and click-and-collect continues to rise at a rapid rate, one must ask what comes next for the mega-malls that dot our maps. As department stores continue to reduce their physical presence, retail developers are looking towards creating experiential spaces and offerings that will define the next life of our shopping centres.
Westfield is one such developer looking to create experiences for consumers. Its Knox shopping centre in Melbourne’s east features a basketball court and swim school, while at Chermside in QLD there is a challenge room. There is a Peloton at Bondi Junction and an augmented reality football field in Chatswood. Rival developer Mirvac held cooking workshops at its outlets late last year, while night markets are often commonplace during summer months at many shopping centres across the country.
“Now more than ever, real-life experiences are valued, and our customers are prioritising human interaction and genuine connection,” a Mirvac spokeswoman says in an interview with The Sydney Morning Herald.
CBRE Head of Retail Property Management Sheree Griff says her agency believes shopping centre investment is expected to grow by half to over $6 billion in 2025, due to experiential integrations.
“It could be experiencing a product brand and testing how it works - like a demonstration of cooking equipment, immersive sensory encounters, creative storytelling, food and beverage offerings or leaning into the luxury concierge service level where the customer feels special,” she says.
Macquarie Associate Professor and retail historian Matthew Bailey says that finding the balance is key for developers to maintain profit margins.
“Today, a bowling alley might be great fun, but it doesn’t generate the same rent as three jewellery shops and half a dozen fashion stores,” he says.
“Balancing growth, an expanding scope of functions and convenience will be a delicate calculation moving forward.”
Image: Marrickville Metro by Hames Sharley.
