Reinvent or go extinct: The shopping mall dilemma

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The shopping mall dilemma

The rise of online shopping, coupled with consumers' desire to avoid hectic shopping centres, have shoved malls into a corner, leaving them with two potentially painful options: Reinvent or go extinct.

"In many places, the mall is the community's de facto downtown – the main public gathering spot – as well as a highly valued shopping location," according to Michael D. Beyard, one of the authors of the 2006 report Ten Principles for Rethinking the Mall.

But as Stephanie Clifford points out in this feature from The New York Times, over the past five decades, shopping malls have become more of a relic of "the way people once wanted to shop."

Hammered by the recession, retailers have been forced to close locations, while growing chains, such as H&M and Lululemon, have refused to set up shop in ghost town-like locations. According to research firm Reis, the vacancy rate at U.S. shopping centres and strip malls was 11 per cent in the last quarter of 2011, the highest level since 1991.

These profound economical and societal changes have prompted urban planners and community activists to rethink the very idea of the shopping mall. Though schools, clinics, call centres and dental offices are already standard fixtures in many shopping malls, don't be surprised to see new, more environmentally conscious tenants – like vegetable gardens and even dog parks – spring up in a mall near you in the near future.

"The old rules of mall development are breaking down rapidly as developers rethink what the mall could be," Mr. Beyard says.

Prioritize data in three simple steps

The surplus data available at a keystroke can be a blessing for a small business owner, but it can also be a curse. For those companies looking to gain insight into current operations, and plan for short-term forecasting, Inc.com offers what it deems the three most important numbers to analyze: 1. pipeline coverage; 2. sales per employee; and 3. customer payback period.

Don't be discouraged by a lack of experience

You've got a great idea for a company, but don't have the entrepreneurial heft to back it up, no MBA education and zero financing. Sure you may be facing massive roadblocks, writes Patrick FitzGerald in this article for the Huffington Post, but it is possible to overcome them if you follow some suggestions.

EVENTS AND KEY DATES

Business plans and other communication tools

On Feb. 15, from 6:00 p.m. to 7:00 p.m., the MaRS Discovery District in Toronto will present tips, examples, techniques and tools for building the five essential communication documents for entrepreneurs. Read more here.

Introduction to developing entrepreneurial ideas

On Feb. 13, from 6:00 p.m. to 7:30 p.m. in New York, a class will focus over four sessions on the idea-generation process: how to generate creative ideas and turning them into businesses. Click here to read more.

EDITOR'S PICKS FROM REPORT ON SMALL BUSINESS

An intimate office where ideas come to life

At the office of Sid Lee, a creative agency located in Toronto's Distillery Historic District, Victorian Industrial architecture mingles with design elements of the 21st century, creating an inspiring fusion of old and new.

FROM THE ROSB ARCHIVES

Canadian offshoot reaps export rewards

B.C. Instruments India adds value to imported raw materials and then ships them overseas for profit.

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