Latest news with #retailtransformation
Mail & Guardian
19-07-2025
- Business
- Mail & Guardian
Retailers having to redefine the purpose of malls
Shoppers are wanting more than a place to buy goods, they want an experience In a period marked by economic restraint, cautious consumer sentiment and digital disruption, one might expect South Africa's physical retail spaces, particularly shopping centres, to contract or stagnate. Instead, a transformation is under way. The traditional mall needs to be reimagined from a retail zone to an experience-led destination. This evolution mirrors shifts seen in developed markets, where foot count alone is no longer the metric of success. Property managers are being measured on dwell time, emotional engagement and relevance to consumer lifestyles. And in a country grappling with high inflation, relevance is a critical currency. Several global studies confirm what South African consumers are showing through their behaviour, that shopping is no longer the primary driver of mall visits. A 2023 report by PwC found that 59% of global consumers say they value experiences as much as products, and that number climbs in younger cohorts. The trend is echoed in how South Africans are choosing to spend their time in these places: they're showing up for culture, social interaction, curated events and community moments and not just convenience. This behavioural shift is partly generational. Millennials and Gen Z are digital natives with easy access to online retail, yet they're also wanting physical connection and shared experiences. It's also economic. In a tight market, consumers are being selective with how and where they spend their money and time. They are less likely to make incidental visits, and more likely to prioritise destinations that offer meaning and value beyond the sale. The mall is no longer just a place to transact. Internationally, this shift has led to a rise in 'retailtainment', immersive exhibitions and experiential zones designed to draw footfall and create memory-making moments. In South Africa, leading property portfolios are adapting too. Commercial property owners are recognising that retail is no longer about square meterage alone. The future belongs to those who can transform malls into destinations, places where customers don't just shop, but feel seen, inspired and connected. Innovation in this context doesn't mean novelty for its own sake, it must be relevant and resonate with consumers. What is interesting is the idea of intersecting fashion and emerging technology, using generative AI to reimagine iconic wardrobe pieces. Malls are creating family experiences, fusing live theatre into the mall environment, making entertaining children more affordable during the high-pressure holiday period. Malls can also serve as community learning hubs. Liberty Promenade in Mitchells Plain is a good example of this. In a community that has significant problems because of socioeconomic hardships, substance abuse and inadequate support services, the mall's Unmasking Strength campaign earned a gold award in the CSI category at the recent Solal Awards in Warsaw, Poland for its innovative approach to supporting youth mental health, opening conversations and building resilience. This is a reminder that malls, especially in under-served areas, have a role to play as a form of civic centre, and not just as retail hubs. A strategic shift from short-term sales-led activations to longer-term brand-building, storytelling and placemaking is required. Malls are also becoming proof points in the debate about the future of brick-and-mortar retail. Far from being obsolete, physical spaces are finding new purpose, if managed with intent. The data supports this. A study by CBRE showed that shoppers who take part in an experiential component spend up to 40% more per visit than those who don't. The implication is clear, experience is a revenue driver. Importantly, many of the most successful initiatives are rooted in purpose rather than pure promotion. This is aligned with broader retail trends, where consumers increasingly reward brands that reflect their values. Deloitte's 2024 Global Consumer Pulse found that 57% of consumers are more loyal to brands that take a stand on social or environmental issues. Purpose-led initiatives such as Unmasking Strength show that retail spaces can host meaningful discourse, not just commerce. For landlords, this means developing strategies that go beyond leasing and footfall metrics. But relevance will require intentional innovation. Jonathan Sinden is the chief operations officer at Liberty Two Degrees.
Zawya
22-05-2025
- Business
- Zawya
GCC retail sector enters bold new era, set for $390bln by 2028
The retail industry in the GCC is undergoing a sweeping transformation. Once dominated by traditional models, the sector has now emerged as a key enabler of economic diversification, technological innovation, and consumer-centric growth, according to a report by LOGIC Consulting. The sector is expanding rapidly and is projected to reach over $390 billion by 2028, driven by digital innovation, changing shopper behavior, and strategic government initiatives, stated LOGIC in its report, titled 'Revolutionizing Retail: Unveiling GCC's Five-Year Transformation.' Retail is no longer just a transactional space in the region, it is becoming a cornerstone of national development agendas, fostering private investment and energizing adjacent sectors such as logistics, real estate, and tourism, it added. The report highlights the evolution of consumer expectations across the GCC. Shoppers are now more digitally fluent, time-sensitive, and experience-driven. With 87% of consumers in the region using both online and offline channels to make purchases, the retail experience is no longer linear - it is 'phygital.' Food, non-food retail on the rise The GCC's retail ecosystem is broadly split into two pillars: food and non-food, each showing robust but distinct growth paths. Food retail is expected to grow from $127.2 billion in 2023 to $162 billion by 2028, supported by rising urbanization and shifting dietary preferences. At the same time, non-food retail – including luxury, electronics, and fashion – is surging faster, with a CAGR of 6.2%, expected to hit $243.6 billion within the same period. Saudi Arabia and the UAE continue to lead the region, representing over 75% of all retail sales today – a share set to grow further. Digital retail taking centrestage From AI-enabled platforms to hyper-personalized e-commerce journeys, retailers are reinventing themselves at breakneck speed. The emergence of 'quick commerce'; ultra-fast delivery in under 30 minutes, is reshaping how consumers access everyday essentials. Digital-first players like Noon and are competing head-to-head with legacy giants such as Carrefour and Lulu, who are now embedding AI, live inventory, and omnichannel logistics into their operating models. The report outlines how organized retail is expanding, with nearly 4 million sq m of new retail space expected by 2028. Yet the future lies beyond square footage, experiential shopping, augmented reality, and predictive personalization are becoming the norm. "Retailers in the GCC are no longer just selling products, they are curating journeys and building ecosystems," stated Rabie. "Success hinges on who can best merge the physical with the digital," he added. The rise of value and purpose While luxury retail continues to thrive, a powerful countertrend is emerging: value-driven retail. Private labels, cooperative societies, and budget-friendly chains are resonating with a growing middle class and price-sensitive consumers, said the report. Simultaneously, ethical and sustainable retail is gaining momentum, with over half of GCC consumers now prioritizing environmentally responsible brands, it added. The report concludes with five strategic calls to action for retailers aiming to thrive in the region's evolving landscape: *Define a compelling USP in a saturated, digitally competitive market. *Embrace operational transformation through lean processes, data intelligence, and agile supply chains. *Navigate market fragmentation with readiness for consolidation and joint ventures. *Build strategic partnerships and ecosystems that drive innovation and speed to market. *Adapt deeply to local market dynamics, tailoring everything from inventory to customer service. As the region becomes a hub for tech-savvy, high-income, and experience-driven consumers, the retail sector is poised to become a defining pillar of the GCC's post-oil economy, stated Rabie. "The GCC is not just catching up to global retail trends, it is helping define them," he noted. "This is a moment of reinvention, and those who lead now will set the tone for the next decade," he added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
