[box type=”shadow” ]
“In retail today, the easy days of retail are fading. Sales growth rates are slower and competition is for the consumers and tenants are intense,”
– Colin Dowall
[/box]
JLL’s Property and Asset Management Services team in the Middle East provides consultancy services to shopping mall owners. The purpose of this work is to promote and educate on the best practices of retail management to future proof the assets against the changing retail environment, trends, and competition. Colin Dowall, Head of Property and Asset Management Services, MENA – JLL, states that it’s key to note that the mall is not just competing with other malls but also with the four O’s of shopping – Online shopping, Overseas shopping, Outlet shopping, and consumer’s Opinion. “You are competing with e-commerce, trends, and malls further afield where services and comforts are better provided. In retail today, the easy days of retail are fading. Sales growth rates are slower and competition is for the consumers and tenants are intense,” he adds.
Challenges
FM companies face a multitude of challenges while dealing with the retail sector. Be it frequent cleaning of high traffic areas, scheduled maintenance during holidays and weekends, AC maintenance, and glass/facade cleaning are just some of the challenges FM companies face on the job. Having handled the demands and providing FM services for the retail sector both in UAE and Oman, Ali R. Deryan, General Manager, Tanzifco Emirates / CFM Facilities Management Services L.L.C, says that the design element of these structures are the first challenge to reckon with in terms of the maintenance work to be carried out without disrupting the look and feel of the place. Further, most retail operators have several outlets spread regionally and individual outlets cannot afford the cost of permanent technicians and cleaners. “Therefore, mobile FM workforce solutions are the most practical and cost effective answer. Additionally, most malls will only allow repairs and cleaning outside opening hours which compel retail operators to rely on a service provider to be able to meet these demands,” Deryan.
[box type=”shadow” ]
“Most malls will only allow repairs and cleaning outside opening hours which compel retail operators to rely on a service provider to be able to meet these demands.”
– Ali R. Deryan
[/box]
Thanks to rising overseas experience and globalization of retail brands, the consumer is increasingly discerning and less tolerant of an unpleasant shopping environment. Dowell says that for shopping centres, the failure to provide proper wayfinding, a pleasant environment, and clean facilities results in shorter visits as customers leave hours earlier than they might otherwise, especially if they have young children. Less time at the mall means less time for impulse purchases and spending on food and entertainment.
