As we have noted before, through data analytics, “We can extract and sort data to learn and assess behavior and patterns. And techniques vary according to a firm’s requirements.” Now, we look at a specific example: shopping mall analytics.
For more information on analytics, read these prior posts:
- How Marketers Use Artificial Intelligence
- The Do’s and Don’ts of Business Charts
- Data Analytics Can Enhance Customer Experiences
McKinsey Report on Shopping Mall Analytics
Recently, McKinsey showed how analytics apply to retail shopping centers. And as the firm’s Ismail Bel-Bachir, Sandrine Devillard, Alex Sawaya, and Ivana Valachovicova observe:
When a mall operator uses analytics to select tenants, optimize mall layout, and determine rents, sales can rise by 20 percent. Advanced analytics, may revolutionize almost all areas of the mall business. Unfortunately, many mall operators lag behind tenants when it comes to using advanced analytics. One explanation is that malls haven’t traditionally interacted directly with consumers. So they don’t have much consumer data to analyze. But we’ve found that malls already have access to significant amounts of data. These include data on shopper behavior, tenant sales, and category performance. What they don’t typically have are the analytical skills and tools to generate insights from the data. Most mall operators still make decisions based on tradition, experience, or intuition.”
“As a rule, what stores best attract consumers living or working in the mall’s trading area? And do anchor stores drive foot traffic and mall sales? Especially, which tenants are unexpected ‘spend engines?’ Generally, these tenants drive cross-conversion and create value despite their low sales. Which combinations of stores or categories yield the highest total mall sales?”
“To improve, new tools — “right tenant, right location” tools — can estimate each tenant’s omnichannel sales. As well as the rent it should pay. And every potential combination of tenants and units. (In determining tenants’ rent, a mall operator’s primary goal should be to maximize the combined sales of tenants.”
