PHILADELPHIA—While reboots have long been the fashion in the entertainment industry, the concept has seldom been applied to retail. But looking at the changes happening to PREIT's mall portfolio, maybe it's time it should. GlobeSt.com met up with CEO Joseph Coradino to hear how the company is revamping its properties and breathing new life into the concept that was recently left for dead.
GlobeSt.com: Malls were suffering a few years ago. What are successful malls doing today to redefine themselves?
Joseph Coradino: At PREIT, we are taking a close look at the "traditional" mall environment and evolving it into a place where shopping, dining and socializing converge. We're playing close attention to consumer behavior and shopper demand to better engage our customer and offer them a more personalized experience. In short, that's convenience and variety. So we're adding amenities like Deliv, charging stations, WiFi, play areas and more to our centers and we're focused on procuring the right tenant mix—adding dining and entertainment and mixing full price with value offerings.
GlobeSt.com: What are the specifics of remerchandising? Is it all about millennials and tech?
Coradino: Our remerchandising efforts have been focused on delivering tenants to marketplaces that will compel shoppers to visit our properties and stay. Milennials of course play a vital role in the future of the mall environment. They're an important demographic that values experience and knowledge. They're digitally savvy, they know how to quickly find what products they want at the best available price. From a merchandising perspective, they are driven by experiences and socializing with families so they are attracted to our restaurant and experiential additions.
GlobeSt.com: And what does it mean for the baby boomers who grew up with the more traditional version?
Coradino: It means primarily that we need to strike the right balance of offerings to satisfy the various customer segments we're focused on attracting. That isn't new in the mall world, but the interests of our customers have changed over time. It's critical that we engage with all of our shoppers as soon as they step into the property. For the millennials, that may be with free WiFi or through our social media channels; for baby boomers, that could be through the socializing of the shopping experience with upscale dining options and unique lifestyle-focused tenants like salon/spas or fitness studios.
GlobeSt.com: How are malls—outside of individual retailers—enhancing the shoppers' online experience?
Coradino: Social media is a key channel for engaging with our shoppers—sharing retailer offers, inspiring their purchases through curated suggestions and offering content that is relevant to their lifestyle. But we also offer unique online promotions like "Best Gift Ever" that encourages shoppers to download our app, upload receipts from our malls and enter to win a variety of prizes. We also offer convenient tech-friendly amenities like soft seating, WiFi and Charge It Spot charging stations in our centers so shoppers don't have to stress about losing power on their mobile phones. We'll also be launching beacons in our malls next year, which will allow us and our retailers to engage with shoppers while they're nearby.
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Geoffery Metz
Geoffery Metz is the content manager for ALM's GlobeSt.com, Credit Union Times and Treasury & Risk. Before joining ALM, he spent several years overseeing the newsroom at the financial wire service Business Wire, with special focus on multimedia presentation for the web.
