Open-air shopping centers, also known as strip malls, have been gaining popularity in recent years due to the decline of traditional enclosed malls. Unlike their enclosed counterparts, open-air shopping centers are organized rows of stores spread over an area with a sidewalk or pavement in front. They offer a unique combination of retail and entertainment that attracts foot traffic while reducing operating costs. However, they also have their drawbacks, including vulnerability to e-commerce and negative impacts on local businesses. In this comprehensive guide, we will explore the pros and cons of open-air shopping centers and discuss the factors that contribute to their success.
What are Open-Air Shopping Centers?
Open-air shopping centers, also known as outdoor shopping centers or strip malls, are retail establishments that consist of rows of stores spread over an area with a sidewalk or pavement in front. They are designed to offer a unique combination of retail and entertainment that attracts foot traffic while reducing operating costs. Unlike enclosed malls, they do not require central air conditioning throughout the year. Instead, they create outdoor seating areas that allow visitors to enjoy pleasant and windy days. This means they only have to install air conditioners for individual stores, which helps minimize power consumption and reduces overall operating costs.
Advantages of Open-Air Shopping Centers
Open-air shopping centers have several advantages that make them attractive to both consumers and retailers. These include:
- Convenience and Variety: Open-air shopping centers offer a wide variety of options for consumers to choose from. They provide easy access to multiple stores and restaurants in one location, making it convenient for shoppers to get everything they need in one trip.
- Entertainment and Activities: Many open-air shopping centers offer a mix of retail and entertainment options, such as movie theaters, bowling alleys, and live music performances. This makes them popular destinations for families and friends looking to spend time together.
- Discounts and Promotions: Open-air shopping centers often offer discounts and promotions to attract customers, especially during the holiday season. These deals can be particularly enticing for budget-conscious shoppers looking to save money.
- Safer Shopping Experience during Pandemic: As the COVID-19 pandemic continues to affect daily life, open-air shopping centers provide a safer shopping experience than enclosed malls. With more space and outdoor seating areas, shoppers can maintain social distancing while enjoying fresh air and natural light.
- Lower Energy Consumption: Unlike traditional enclosed malls, open-air shopping centers do not require central air conditioning throughout the year. Instead, they create outdoor seating areas that allow visitors to enjoy pleasant and windy days. This means they only have to install air conditioners for individual stores, which helps minimize power consumption and reduces overall operating costs.
The Pros of Open-Air Shopping Centers
Convenience and Variety
One of the main advantages of open-air shopping centers is the convenience and variety they offer. They provide easy access to multiple stores and restaurants in one location, making it convenient for shoppers to get everything they need in one trip. This is especially true for grocery-anchored shopping centers, which often include pharmacies and other essential services. In addition, open-air shopping centers often have ample parking, making it easy for shoppers to find a spot close to the stores they want to visit.
Entertainment and Activities
Many open-air shopping centers offer a mix of retail and entertainment options, such as movie theaters, bowling alleys, and live music performances. This makes them popular destinations for families and friends looking to spend time together. In addition, open-air shopping centers often host community events, such as farmers markets and holiday festivals, which help to create a sense of community and bring people together.
Discounts and Promotions
Open-air shopping centers often offer discounts and promotions to attract customers, especially during the holiday season. These deals can be particularly enticing for budget-conscious shoppers looking to save money. In addition, many open-air shopping centers have loyalty programs that reward frequent shoppers with exclusive discounts and promotions.
Safer Shopping Experience during Pandemic
As the COVID-19 pandemic continues to affect daily life, open-air shopping centers provide a safer shopping experience than enclosed malls. With more space and outdoor seating areas, shoppers can maintain social distancing while enjoying fresh air and natural light. Many open-air shopping centers have also implemented safety measures, such as requiring masks, providing hand sanitizer, and limiting capacity.
Lower Energy Consumption
Unlike traditional enclosed malls, open-air shopping centers do not require central airconditioning throughout the year. Instead, they create outdoor seating areas that allow visitors to enjoy pleasant and windy days. This means they only have to install air conditioners for individual stores, which helps minimize power consumption and reduces overall operating costs. In addition, open-air shopping centers can leverage daylight to illuminate common seating areas and walkways, further reducing energy consumption and improving the overall shopping experience.
The Cons of Open-Air Shopping Centers
Crowded and Impersonal
One of the disadvantages of open-air shopping centers is that they can become crowded and impersonal. With so many stores, restaurants, and entertainment options in one location, these centers can attract large crowds, especially on weekends and holidays. This can make the shopping experience less enjoyable for some customers who prefer a quieter, more relaxed atmosphere.
Negative Impact on Local Businesses
Open-air shopping centers can have a negative impact on local businesses, particularly small, independent retailers. These centers often feature large chain stores, which can draw customers away from smaller, locally-owned shops. As a result, some local businesses may struggle to compete and ultimately close down.
Visual and Noise Pollution
Due to their size and design, open-air shopping centers can contribute to visual and noise pollution in the surrounding area. Large signage, bright lights, and increased traffic can detract from the aesthetic appeal of the neighborhood and create unwanted noise for nearby residents.
Vulnerability to E-commerce
Like all brick-and-mortar retail establishments, open-air shopping centers are vulnerable to the rise of e-commerce. Online shopping offers customers convenience, lower prices, and a wider selection of products, making it an attractive alternative to visiting a physical store. As a result, open-air shopping centers may struggle to compete with online retailers and maintain foot traffic.
Success Factors of Open-Air Shopping Centers
High Foot Traffic
One of the key success factors for open-air shopping centers is their ability to attract high foot traffic. Carefully placed signage can grab a consumer’s attention even before they step inside the shopping center, and a mix of popular stores, restaurants, and entertainment options can keep visitors coming back. In addition, open-air shopping centers often benefit from being located in areas with high visibility and easy access, such as busy intersections or major highways.
Anchor Tenants
Having anchor tenants, such as well-known grocery stores or department stores, can help to attract a steady influx of traffic to open-air shopping centers. These large, popular retailers draw in customers who are likely to visit other smaller stores and restaurants within the center, boosting overall foot traffic and sales.
Personalized Signage
The architecture and design of open-air shopping centers ensure that individual tenants get maximum visibility. Carefully placed signage can grab a consumer’s attention even before they step inside the shopping center. This is in contrast to enclosed malls, where visitors must set foot inside the building to find what stores are available.
Mix of Stores and Restaurants
A successful open-air shopping center offers a diverse mix of stores and restaurants that cater to a wide range of customer preferences. Including a variety of retail options, from clothing and accessories to home goods and specialty shops, helps to create a shopping destination that appeals to a broad audience.
Public Art and Amenities
Open-air shopping centers that incorporate public art, green spaces, and comfortable seating areascreate a pleasant and inviting atmosphere for visitors. These features can help to set the shopping center apart from competitors and encourage people to spend more time – and potentially more money – at the center.
Comparison with Traditional Shopping Malls
Store Closures in 2020
Traditional shopping malls have faced significant challenges in recent years, with many experiencing store closures due to the rise of e-commerce and changing consumer preferences. In contrast, open-air shopping centers have proven to be more resilient, offering a unique combination of retail and entertainment options that continue to attract foot traffic.
Greater Desire for Outdoor Spaces during Pandemic
The COVID-19 pandemic has further highlighted the advantages of open-air shopping centers, as consumers increasingly seek out outdoor spaces for shopping and leisure activities. Enclosed malls, with their reliance on indoor spaces and central air conditioning, have struggled to adapt to the new reality of social distancing and safety concerns.
Categories of Open-Air Retail Spaces
There are several categories of open-air retail spaces, including neighborhood centers, community centers, lifestyle centers, and power centers. Each type offers a differentmix of retail and entertainment options, catering to different consumer needs and preferences.
Active Quarters for Grocery-Anchored Shopping Centers
Grocery-anchored shopping centers, a type of open-air retail space, have remained particularly active during the pandemic. As essential businesses, grocery stores have continued to draw foot traffic, benefiting other retailers and restaurants within the shopping center.
De-Malling of Properties
Some traditional enclosed malls have undergone "de-malling," converting their properties into open-air shopping centers to adapt to changing consumer preferences and compete more effectively in the retail landscape. By offering a mix of retail, entertainment, and outdoor spaces, these transformed centers can better attract foot traffic and meet the needs of today's consumers.
Bottom Line
Open-air shopping centers offer several advantages over traditional enclosed malls, including convenience, variety, entertainment, and lower energy consumption. The success of open-air shopping centers depends on factors such as high foot traffic, anchor tenants, personalized signage, a diverse mix of stores and restaurants, and appealing public amenities. As the retail landscape continues to evolve, open-air shopping centers will likely play an increasingly important role in meeting the needs and preferences of modern consumers.
